• Focus News EU is an independent media based in Europe
  • providing the world's latest news, the definitive source for independent journalism from every corner of the globe.

US Household Net Worth Surged to Record High in 2nd Quarter

Business Emily 4weeks ago (09-22) 10Views

Gabbard: Election Fraud a ‘Serious Threat’

Rep. Tulsi Gabbard (D-Hawaii) has put forward a bipartisan bill aiming to improve the security of vote-by-mail. It proposes to incentivize states to ban ballot harvesting. Here’s the latest on the 2020 U.S. presidential election coverage.Focus News: Gabbard: Election Fraud a ‘Serious Threat’

US Household Net Worth Surged to Record High in 2nd Quarter

American household wealth has hit a historic high, with savings accounts and equity portfolios seeing a big boost from federal pandemic relief and surging stock markets, according to a Federal Reserve report.

The Fed’s most recent Flow of Funds report, released Sept. 21, provides a snapshot of the wealth and income of U.S. households and nonprofit organizations as of June 30. The report shows that when the second quarter ended in June, household net worth—which is the value of homes, stock investments, and other assets minus what’s owed on mortgages and other loans—hit a record high of $118.9 trillion.

The $7.6 trillion jump from the prior quarter also is the biggest quarterly increase in history.

US Household Net Worth Surged to Record High in 2nd Quarter

Household net worth at the end of the final quarter of 2019 stood at $118.5 trillion. The outbreak of the CCP (Chinese Communist Party) virus then dealt the U.S. economy a colossal blow, wiping out around $7.23 trillion in the wealth of households and nonprofits—the biggest such quarterly tumble on record.

The wipeout included $8.29 trillion in corporate equity and $492 billion in debt securities, although real estate holdings rose in value by $422 billion.

Beginning in late February, as the CCP virus began spreading rapidly across the world, the benchmark S&P 500 equities index plunged 34 percent in the space of a month, but rebounded quickly and, by mid-August, it had recovered all of its losses. The Fed report shows that, in the second quarter, stocks and mutual funds saw a $5.7 trillion increase in value, debt securities rose by $67 billion, while real estate gained $458 billion.

US Household Net Worth Surged to Record High in 2nd Quarter


Wealth also was boosted by a $700 billion increase in savings among households and non-financial businesses, many of which benefited from enhanced unemployment benefits. Household debt levels, meanwhile, grew at just a 0.5 percent annualized rate over the second quarter, the smallest increase since 2012.

The report reinforces the view that the quick mobilization by lawmakers and the Fed in March and April, including approval of small-business loans and $600 per week in extra unemployment insurance, threw a temporary safety net under much of the economy.

“The fiscal stimulus that we’ve received so far has been really important in shoring up household balance sheets, and it was instrumental to the recovery in consumer spending that we’ve seen in the third quarter,” Blerina Uruçi, a U.S. economist at Barclays, said in remarks to The Wall Street Journal.

Many economists now fret that the expiration of small-business loans and the unemployment insurance boost that came as part of the pandemic relief package will force people to increasingly rely on their extra savings and, potentially, slow the economic recovery.

Reuters contributed to this report.

Follow Tom on Twitter: @OZImekTOM

Focus News: US Household Net Worth Surged to Record High in 2nd Quarter

House Democrats Unveil Bill to Avert Government Shutdown, Lacks Farm Aid

House Democrats on Monday introduced a bill to keep the federal government funded until Dec. 11, although it’s not clear if the White House or congressional Republicans will take it up, raising the prospect of a federal shutdown by the end of September. The continuing resolution (CR) bill (pdf) extends current levels of spending past the Sept. 30 deadline until Dec. 11. However, it does not include $30 billion for farm aid that the White House sought, officials said. “We do prefer additional farm aid in the CR. Most of all we want a clean CR, keep the government open,” White House economic adviser Larry Kudlow told reporters on Monday, suggesting that the White House may still accept the bill in its current form without farm aid. It’s not clear if the…

The article is from the Internet, and the content does not represent the position of this website.丨This website usesBY-NC-SAagreement for authorization
please indicate the link for reprint:US Household Net Worth Surged to Record High in 2nd Quarter
Likes (0)