Family wealth exceeds $150 trillion for the first time despite high debt

A bundle of US five-dollar banknotes is checked at the Bureau of Engraving and Printing in Washington on March 26, 2015.

Gary Cameron | Reuters

The Federal Reserve reported Thursday that Americans are getting considerably richer as 2021 comes to a close, thanks to a nice boost from their holdings in the stock market and rising property values.

Family net worth in the fourth quarter crossed $150 trillion for the first time, rising at a healthy 8.2% sequentially in the fastest period of growth since the first quarter of 2020. The increase came thanks to a combined $4 trillion increase in holdings. Shares of companies and housing.

The total level – $150.29 trillion, to be exact – represents a 14.4% increase over last year. The strengthening came as the US economy grew at the fastest pace since 1984 and the stock market enjoyed another strong year.

The move came despite the rapid increase in debt at all levels.

Total non-financial debt reached $65.1 trillion, including $17.9 trillion at the household level, $18.5 trillion in the business world and $28.6 trillion from the government. Each category has seen significant rises.

Household debt jumped at an 8% annual rate, due to a 6.9% increase in consumer credit and an 8% jump in mortgages. Nonfinancial corporate debt increased 6.7%, while federal government debt jumped 10.8% after declining 1.3% in the third quarter.

The first quarter numbers for 2022 are unlikely to be good for net worth.

GDP is expected to gain little, if any, in the first quarter, and Stock market stumbles outside the gate, under the pressure of hyperinflation and the geopolitical and humanitarian crisis in Ukraine. Stocks are in correction mode and remain volatile, and future interest rate increases will likely slow growth even more.

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The figures released on Thursday showed Consumer prices increased 7.9% from last yearWhile workers’ wages in inflation-adjusted terms contracted by 2.6%.

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