Askume, Sept 12 – U.S. household wealth rose to $163.8 trillion last quarter, setting a new record, helped by rising real estate values and surging stock markets, Federal Reserve data showed on Thursday.
The total wealth of households and nonprofits increased by $161 trillion at the end of the first quarter, driven primarily by a $1.8 trillion increase in the value of real estate holdings and a $700 billion increase in the value of real estate.
At the same time, household debt grew at an annual rate of 3.2%, the fastest growth rate since the third quarter of 2022. The US dollar stood at $18.51 trillion at the end of June, down from a record high of $18.51 trillion at the end of March.
The snapshot of household finances comes less than a week before the Fed is widely expected to cut borrowing costs for the first time since the pandemic recession.
Policymakers are taking these steps as inflation remains low, hoping to prevent a slowing labor market from worsening and dragging down the overall economy.
Stocks closed at near all-time highs in the second quarter, with the benchmark S&P 500 posting a total return (including reinvested dividends) of 4.3%.
The report also showed that corporate loans grew at an annual rate of 3.8%, slightly lower than the 4% growth rate in the first quarter.
