50% Off! Beat the market in 2025 with InvestingProCLAIM SALE

US household wealth rises in Q2 to record $163.8 trln

Published 09/12/2024, 12:32 PM
Updated 09/12/2024, 01:16 PM
© Reuters. FILE PHOTO: A cyclist passes the Federal Reserve building in Washington, DC, U.S., August 22, 2018. REUTERS/Chris Wattie/File Photo
US500
-

(Reuters) -U.S. household wealth rose last quarter to $163.8 trillion, a fresh record, driven by gains in real estate values as well as a rise in the stock market, data from the Federal Reserve showed on Thursday. 

The increase in the net worth of households and non-profits, which stood at $161 trillion at the end of the first quarter, was driven largely by a $1.8 trillion increase in the value of real estate holdings and a $700 billion gain in the value of equity holdings.

At the same time, household debt rose at an annualized rate of 3.2%, 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 totaling $18.44 trillion at the end of June, down from a record $18.51 trillion at the end of March

The snapshot of households' financial wellbeing 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 labor market from worsening, dragging the broad economy down with it.

© Reuters. FILE PHOTO: A cyclist passes the Federal Reserve building in Washington, DC, U.S., August 22, 2018. REUTERS/Chris Wattie/File Photo

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% including reinvested dividends.

The report also showed business debt rose at an annualized 3.8% pace, a shade less than the 4% pace of the first quarter.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.