More good news for the Trump Administration came yesterday from The Federal Reserve.
U.S. household wealth increased in the second quarter to yet another record, driven by solid gains in financial assets and rising property values, figures from the Federal Reserve in Washington showed Thursday.
HIGHLIGHTS OF HOUSEHOLD WEALTH REPORT (2Q)
The increase in household wealth reflects steady growth in house prices, which were up 5.7 percent in June from a year ago, based on S&P CoreLogic Case-Shiller data, as well as a 2.6 percent rise last quarter in the S&P 500 Index, which is hovering near a record high.
A strong job market and low inflation also are allowing Americans to improve their purchasing power, helping to sustain household spending, the biggest part of the economy. The report also showed companies had almost $2.3 trillion in liquid assets, giving them the means to boost investment.
- Mortgage borrowing advanced at a 2.8 percent annualized pace; other forms of consumer credit, including auto and student loans, climbed at a 4.6 percent rate
- 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