US wealth continues to grow | Economic News

US household wealth hits record high of $163.8 trillion.

According to data released by the Fed, household wealth in the United States broke a new record by rising to $163.8 trillion in the last quarter.

The increase in household and nonprofit net worth, which reached $161 trillion at the end of the first quarter, was largely due to a $1.8 trillion increase in the value of real estate assets and a $700 billion gain in the value of equity assets.

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 also fell modestly, with bank balances, money market funds and foreign exchange holdings totaling $18.44 trillion at the end of June, down from $18.51 trillion at the end of March, the report said.

The stock market finished the second quarter at near-record levels, with the benchmark S&P 500 index returning 4.3% overall, including reinvested dividends. The report also showed that business debt rose 3.8% annually, slightly below the 4% rate in the first quarter.

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