Underscoring some analysts view that the US economy will not go in to a prolonged recession and may continue to have the soft landing. The Federal Reserve is reporting that US household net worth rose to a record $163.8 trillion in Q2 2024.
- Stock market values rose by $0.7 trillion in Q2
- Real estate values rose by $1.8 trillion in Q2.
Worries however, are on the debt side of the equation:
- The total nonfinancial debt rose by 4.7% annualized rate in Q2.
- Household debt rose by 3.2% annualized rate in Q2
- Nonfinancial business that rose by 3.8% annualized rate Q2
- Federal government that rose by 6.3% annualized rate in Q2
- State and local government that rose by 6.0% annualized rate in Q2
Of particular concern are the rises in the federal and state and local government debt which is unsustainable and when it is addressed will be a fiscal spending drag on the economy.