US household net worth increased in fourth quarter on stock values
Household net worth climbed nearly
The value of equity holdings advanced
The S&P 500 climbed through much of the fourth quarter as a gradual cooling in both price growth and the broader economy fueled hopes that the Fed would be able to tame inflation without tipping the economy into a recession. High mortgage rates severely restrained demand for homes — a key source of wealth for Americans — and selling prices have begun to fall.
Since then, however, consumer spending has rebounded and inflation has re-accelerated, driving expectations that policymakers will have to raise rates higher — and potentially at a faster pace — than previously expected. Mortgage rates are expected to increase as a result, something that is likely to put even more pressure on the housing market.
Consumer credit not including mortgages rose at a 7% annual rate in the fourth quarter.
Business debt outstanding grew an annualized 3.6%, the slowest pace in six quarters. At the same time, state and local government debt decreased at a 5.2% rate, while federal government debt grew at a slower pace from the previous three-month period.
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