US household wealth rises in Q2 to record $213 trillion
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Gains in real estate values and a rise in the stock market helped drive US household wealth to a fresh record last quarter.
PHOTO: BLOOMBERG
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NEW YORK - US household wealth rose last quarter to US$163.8 trillion (S$213 trillion), a fresh record, driven by gains in real estate values as well as a rise in the stock market, data from the US Federal Reserve showed on Sept 12.
The increase in the net worth of households and non-profits, which stood at US$161 trillion at the end of the first quarter, was driven largely by a US$1.8 trillion increase in the value of real estate holdings and a US$700 billion gain in the value of equity holdings.
At the same time, household debt rose at an annualised rate of 3.2 per cent, the fastest pace since the third quarter of 2022.
Cash on hand dropped modestly, the report also showed, with bank balances plus money market funds and foreign currency holdings totalling US$18.44 trillion at the end of June, down from a record US$18.51 trillion at the end of March.
The snapshot of households’ financial well-being comes less than a week before the Federal Reserve is widely expected to reduce borrowing costs for the first time since the pandemic recession.
Policymakers are making the move as inflation has cooled and in hopes of preventing a slowing labour market from worsening, dragging the broad economy down with it.
The stock market ended the second quarter at near-record levels, with the benchmark S&P 500 index delivering a total return of 4.3 per cent including reinvested dividends.
The report also showed business debt rose at an annualised 3.8 per cent pace, a shade less than the 4 per cent pace of the first quarter. REUTERS
