The Managing Director of Fundstrat Global Advisors discusses his view on the markets, the economy and the Fed’s management of interest rate hikes.
The Federal Reserve found that American households recorded double-digit percent increases in their average real net worth over the past three years.
The median real family net worth for 2022 was $192,900. The US central bank reported that it reached this level on Wednesday as part of… A large-scale survey of consumer finance Which contains a bunch of other data.
That equates to a 37% increase from pre-Covid 2019, when it was $141,100, and “the largest increase in three years” in recent survey history, according to the Fed survey.
The Federal Reserve found that American households recorded double-digit percent increases in their average real net worth over the past three years. (iStock/iStock)
The Fed said: “The net improvement in economic performance, including increases in home prices and corporate stocks that far outpaced consumer price inflation, supported significant increases in median and median inflation-adjusted net worth… between 2019 and 2022″.
Mortgage rates are rising again amid a worsening housing affordability crisis
In September, the month for which the most recent data is available, the CPI saw a 0.4% increase month over month and a 3.7% increase year over year, as previously reported by FOX Business. The central bank wants an inflation rate of 2%, a level it has tried to reach through several interest rate increases over the past year and a half.
The Fed also reported Wednesday that its survey found $70,300 as the median household income in 2021, $2,400 more than the previous three years.
The Fed also reported Wednesday that its survey found $70,300 as the median household income in 2021, $2,400 more than the previous three years. (Jonathan Ernst/File/Reuters Images)
“Gains in income occurred across the income distribution but were largest toward the top, consistent with some increase in income inequality over this period,” the Fed noted.
Nearly 100% of American households have assets — whether financial or nonfinancial — and the average holdings of those households are $332,600, according to central bank data. Its average value saw a 26% increase from 2019.
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The survey identified transaction accounts and retirement accounts as the most popular types of financial assets among Americans.
The share of households with retirement accounts rose 4% from 2019, to 54.3%, according to the Federal Reserve report. Their average holdings were $86,900, which was also an increase.
The share of households with retirement accounts rose 4% from 2019, to 54.3%, according to the Federal Reserve report. (iStock/iStock)
At the same time, 21% of households own shares directly. Three years ago, only 15% did, according to the poll.
| tape | protection | last | It changes | % changes |
|---|---|---|---|---|
| SP500 | Standard & Poor’s 500 | 4278 | -36.60 | -0.85% |
| Me: DJI | Dow Jones averages | 33414.17 | -250.91 | -0.75% |
| Me: comp | Nasdaq Composite Index | 13186.175252 | -128.13 | -0.96% |
It also found that for non-financial assets, vehicles were the most common.
On the debt front, more than three-quarters of households – 77.4% – reported some form of debt. In 2019, it was 76.7%, according to the Federal Reserve.
Its median conditional value ranges around $80,200.
The survey noted that credit card debt “remains the most prevalent type of debt,” according to the Federal Reserve. It pegged the average amount held by a family at $2,700.
The Fed’s Powell warns that a slowdown in economic growth may be necessary to calm high inflation
The Federal Reserve is closely monitoring various economic conditions as it makes plans on what monetary policy measures it will take during the remainder of this year.
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