U.S. President Trump may be the most divisive President in History but the Federal Reserve shows Americans are getting weathier with him. U.S. household wealth increased in the second quarter to yet another record by $1.7 Trillion to $96.2 trillion, following a 2.327 Trillion gain in the first quarter.
U.S. President Trump may be the most divisive President in History but the Federal Reserve shows Americans are getting weathier with him. U.S. household wealth increased in the second quarter to yet another record by $1.7 Trillion to $96.2 trillion, following a 2.327 Trillion gain in the first quarter. . That is $4 Trillion dollars in gains in just 6 months. The solid job market coupled with low inflation is improving improve Americans purchasing power, sustaining household spending the largest component of the U.S. economy.
Much can be traced back to the gains in the stock market since its lows after he was elcted last November with solid gains in financial assets, the S&P 500, Nasdaq and Dow Jones Industrial indices have all hit record highs in recent days. Property prices have also risen in this period. The Fed showed house prices were up 5.7% in June from a year ago based on S&P CoreLogic Case-Shiller data. The gains were aided a 2.6% rise in the S&P 500 index in the last quarter.
HIGHLIGHTS OF US HOUSEHOLD WEALTH REPORT (2Q17)
– From the Federal Reserve’s financial accounts report, previously known as the flow of funds survey
- Net worth for households and non-profit groups rose by $1.7t q/q, or 1.8%, to $96.2t,
- Value of financial assets, including stocks and pension fund holdings, increased by $1.2t
- Household real-estate assets rose by $508b; owners’ equity as share of total real-estate holdings up to 58.4% from 57.9%
- Companies have almost $2.3 trillion in liquid assets.
- Household debt increased at a 3.7% annual rate in the second quarter
- Other credit including one on student loans increased by 4.6%
- Mortgage borrowing advanced at a 2.8 percent annualized pace
- Total non-financial debt grew at a 3.8 percent annual pace
- Federal government obligations expanded 3.6 percent, state and local government debt declined at a 1 percent pace, while business borrowing increased 5.3 percent
Source: Federal Reserve
From The Traders Community News Desk