News
America now facing a 'child care cliff'
Some daycare providers may struggle to stay afloat once pandemic-era relief dries up this fall. And for many working parents, that’ll mean having to scramble to find care. As part of the American Rescue Act of 2021, the federal government provided nearly $24 billion for its Child Care Stabilization Program, which helped keep 200,000 child care providers afloat. The funds were used to maintain or increase staffing, like offering higher pay, hiring or retention bonuses and expanded benefits, as well as to cover rent, mortgage payments or other debts. But with this program set to expire on Sep. 30., more than 70,000 child care programs — or one-third of those supported by federal stabilization funding — will likely close, and approximately 3.2 million children could lose their spots, according to June analysis from think tank The Century Foundation. Here’s why the “child care cliff” could pose a real problem for working parents — and the economy as a whole.
Rate of homeless baby boomers increasing
Many baby boomers across the country are now coming to terms with the hard reality that working for your entire adult life is no longer enough to guarantee you’ll have a roof over your head in your later years. Thanks in part to a series of recessions, high housing costs and a shortage of affordable housing, older adults are now the fastest-growing segment of America’s homeless population, according to a report in the Wall Street Journal, based on data from the Department of Housing and Urban Development. “The fact that we are seeing elderly homelessness is something that we have not seen since the Great Depression,” University of Pennsylvania social policy professor Dennis Culhane told WSJ. Here’s what has triggered what some experts are calling a “silver tsunami” — and what they say needs to change to reverse the tide.
Bob Iger says Disney will 'quiet the noise'
Walt Disney chief Bob Iger has hinted at a possible ceasefire in the culture war between the global media and entertainment conglomerate and its socially conservative critics — telling investors the company will “quiet the noise,” according to an analyst report obtained by Reuters. The CEO’s new strategy comes as Disney (NYSE:DIS) remains at legal loggerheads with Florida Gov. Ron DeSantis — a dispute that kicked off when the entertainment giant protested the state’s so-called “Don't Say Gay” bill, which banned classroom discussion of sexual orientation or general identity for Florida public school students between kindergarten and Grade 3. When then-Disney CEO Bob Chapek spoke out against the law, officially called Florida’s Parental Rights in Education, DeSantis responded with an aggressive campaign against “woke Disney” and worked with state legislature to strip the company of its 56-year-standing “independent special district” status — which allowed Disney to create its own regulations, building codes, and other municipal services. Despite the ongoing legal battles, it seems Disney’s new boss is keen to change the discourse and recover the trust of investors — after the company’s stock fell to a low of $80.57 in early September, a far cry from its peak price of $197 in March 2021.
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Mortgage rate trends this week
Thirty-year fixed mortgage rates have increased slighlty from an average of 7.18% last week, to 7.19%. “Given these high rates, housing demand is cooling off and now homebuilders are feeling the effect,” says Sam Khater, chief economist at housing giant Freddie Mac. "Builder sentiment declined for the first time in several months and construction levels have dipped to a three-year low, which could have an impact on the already low housing supply.”
Thirty-year fixed mortgage rates have increased slighlty from an average of 7.18% last week, to 7.19%. “Given these high rates, housing demand is cooling off and now homebuilders are feeling the effect,” says Sam Khater, chief economist at housing giant Freddie Mac. "Builder sentiment declined for the first time in several months and construction levels have dipped to a three-year low, which could have an impact on the already low housing supply.”
Nike shutters Portland store amid crime spike
Nike is permanently closing its beloved Portland factory store — one year after it shuttered the location, apparently due to a problem with theft. Multiple news outlets published statements from the store’s local business association and the company itself confirming the closure. It seems retail giant — like so many other major brands — may have taken a hit to its bottom line due to a dangerous surge in petty theft shoplifting and organized retail crime. In fact, the National Retail Federation (NRF) estimated in its 2022 security report that theft is costing the retail industry roughly $100 billion. The Nike (NYSE:NKE) store, which opened in 1984 and quickly became a local institution, first closed in October 2022 with no official statement other than a message on the company's website saying “Closed for the next 7 days” — but the store never reopened. At the time, local news station KGW-TV reported thieves were “stealing armloads of Nike merchandise and walking out the front door with no fear of being stopped.” Here’s what may have prompted Nike’s decision.
Nike is permanently closing its beloved Portland factory store — one year after it shuttered the location, apparently due to a problem with theft. Multiple news outlets published statements from the store’s local business association and the company itself confirming the closure. It seems retail giant — like so many other major brands — may have taken a hit to its bottom line due to a dangerous surge in petty theft shoplifting and organized retail crime. In fact, the National Retail Federation (NRF) estimated in its 2022 security report that theft is costing the retail industry roughly $100 billion. The Nike (NYSE:NKE) store, which opened in 1984 and quickly became a local institution, first closed in October 2022 with no official statement other than a message on the company's website saying “Closed for the next 7 days” — but the store never reopened. At the time, local news station KGW-TV reported thieves were “stealing armloads of Nike merchandise and walking out the front door with no fear of being stopped.” Here’s what may have prompted Nike’s decision.
This NFL star retired at 28 to sell Pokemon cards
Many people know Blake Martinez as an NFL inside linebacker who played for the Green Bay Packers, New York Giants and Las Vegas Raiders — but since retiring from football in 2022 at the age of 28, he’s made a name for himself (and a fortune) on a very different playing field. His latest business venture, however, has come to a screeching halt after being the subject of scandal. Martinez ditched the NFL to double down on his side hustle of selling Pokemon cards after rediscovering his passion for the card game in the early days of the COVID-19 pandemic, he told The Athletic. His football teammates didn’t understand at first. “Isn’t that stuff for kids?” they asked. But the linebacker silenced all naysayers when he netted a $108,000 profit by simply opening a box of Pokemon cards on a live stream and auctioning them off to viewers one by one. He used that model to launch a business called Blake’s Breaks in July 2022, which he says brought in more than $11.5 million in revenue in less than a year by reselling trading cards on Whatnot, a shopping platform that specializes in collectibles. He had made a nice chunk of change — without the physical toll and risks of being a pro footballer. “I just asked myself, do I want to keep starting over from ground zero with football, and keep destroying my body, or do I want to start over from ground zero here, and do something I can actually sustain for a long time?” he told The Athletic. “I loved football. But what I found out was I loved building and running my own team even more.”
Many people know Blake Martinez as an NFL inside linebacker who played for the Green Bay Packers, New York Giants and Las Vegas Raiders — but since retiring from football in 2022 at the age of 28, he’s made a name for himself (and a fortune) on a very different playing field. His latest business venture, however, has come to a screeching halt after being the subject of scandal. Martinez ditched the NFL to double down on his side hustle of selling Pokemon cards after rediscovering his passion for the card game in the early days of the COVID-19 pandemic, he told The Athletic. His football teammates didn’t understand at first. “Isn’t that stuff for kids?” they asked. But the linebacker silenced all naysayers when he netted a $108,000 profit by simply opening a box of Pokemon cards on a live stream and auctioning them off to viewers one by one. He used that model to launch a business called Blake’s Breaks in July 2022, which he says brought in more than $11.5 million in revenue in less than a year by reselling trading cards on Whatnot, a shopping platform that specializes in collectibles. He had made a nice chunk of change — without the physical toll and risks of being a pro footballer. “I just asked myself, do I want to keep starting over from ground zero with football, and keep destroying my body, or do I want to start over from ground zero here, and do something I can actually sustain for a long time?” he told The Athletic. “I loved football. But what I found out was I loved building and running my own team even more.”
What is the federal funds rate?
The cost of borrowing money is holding steady, as America's central bank decided to pause increases of the federal funds rate to keep it at a range of 5.25% to 5.50%. This means the rates on credit cards and other variable-rate loans, including home equity lines of credit (HELOCs) will stay the same, for now. What does the federal funds rate have to do with your debt? Here's a look at what the federal funds rate is, what it means for your loans and what you can do as borrowing costs climb higher.
The cost of borrowing money is holding steady, as America's central bank decided to pause increases of the federal funds rate to keep it at a range of 5.25% to 5.50%. This means the rates on credit cards and other variable-rate loans, including home equity lines of credit (HELOCs) will stay the same, for now. What does the federal funds rate have to do with your debt? Here's a look at what the federal funds rate is, what it means for your loans and what you can do as borrowing costs climb higher.
Chicago explores city-owned grocery store
Chicago is exploring the idea of creating a city-owned grocery store to address food inequity after several grocery giants, including Walmart and Whole Foods, have shuttered stores in the city. The city is working with the Economic Security Project to research the possibility of a municipally owned grocery store with the ultimate aim of reducing the impact of disinvestment and lack of food access in some of its historically underserved communities. “All Chicagoans deserve to live near convenient, affordable, healthy grocery options,” Chicago Mayor Brandon Johnson, said in a news release. “We know access to grocery stores is already a challenge for many residents, especially on the South and West sides. “A better, stronger, safer future is one where our youth and our communities have access to the tools and resources they need to thrive.”
Chicago is exploring the idea of creating a city-owned grocery store to address food inequity after several grocery giants, including Walmart and Whole Foods, have shuttered stores in the city. The city is working with the Economic Security Project to research the possibility of a municipally owned grocery store with the ultimate aim of reducing the impact of disinvestment and lack of food access in some of its historically underserved communities. “All Chicagoans deserve to live near convenient, affordable, healthy grocery options,” Chicago Mayor Brandon Johnson, said in a news release. “We know access to grocery stores is already a challenge for many residents, especially on the South and West sides. “A better, stronger, safer future is one where our youth and our communities have access to the tools and resources they need to thrive.”
California McDonald's franchisees slam new bill
The National Owners Association (NOA), a group that represents more than 1,000 McDonald’s franchise owners, has slammed California’s landmark fast food bill for its “draconian” rules. The new AB 1228 legislation, or the Fast Food Franchisor Responsibility Act, was passed by the California Senate on Thursday, Sept. 14. The bill would impose new standards for wages, working hours and other conditions related to the health, safety and welfare of fast food restaurant workers. However, the NOA says the law would introduce costs that “simply cannot be absorbed by the current business model.” The group claims that 95% of the 1,300 McDonald’s (MCD) restaurants in California are locally owned and operated by small business owners, who may struggle to meet the new requirements. “The new AB 1228 legislation has been voted into law and will result in a devastating financial blow to California McDonald’s franchisees at a projected annual cost of $250,000 per McDonald’s restaurant,” NOA said in a memo obtained by FOX Business.
The National Owners Association (NOA), a group that represents more than 1,000 McDonald’s franchise owners, has slammed California’s landmark fast food bill for its “draconian” rules. The new AB 1228 legislation, or the Fast Food Franchisor Responsibility Act, was passed by the California Senate on Thursday, Sept. 14. The bill would impose new standards for wages, working hours and other conditions related to the health, safety and welfare of fast food restaurant workers. However, the NOA says the law would introduce costs that “simply cannot be absorbed by the current business model.” The group claims that 95% of the 1,300 McDonald’s (MCD) restaurants in California are locally owned and operated by small business owners, who may struggle to meet the new requirements. “The new AB 1228 legislation has been voted into law and will result in a devastating financial blow to California McDonald’s franchisees at a projected annual cost of $250,000 per McDonald’s restaurant,” NOA said in a memo obtained by FOX Business.
US lawmaker blasts the Fed over CBDC
Last week, Rep. Tom Emmer (R-MN) re-introduced a bill that would block efforts from the Fed and Biden administration to develop and institute a central bank digital currency (CBDC) that he believes would be used to "undermine the American way of life." “The administration has made it clear: President Biden is willing to compromise the American people’s right to financial privacy for a surveillance-style CBDC," Emmer said during a Sept. 13 press conference. “If not designed to be open, permissionless, and private – emulating cash – a government-issued CBDC is nothing more than a CCP-style surveillance tool that would be used to undermine the American way of life," he said. Emmer's move comes after a fellow Republican lawmaker accused the Federal Reserve of quietly working on a CBDC — which he has likened to “building the financial equivalent of the Death Star.” For the uninitiated, the Death Star is a moon-shaped space station and superweapon featured in the Star Wars franchise. In a July outburst on X (formerly Twitter), Rep. Warren Davidson (R-OH) called on Congress to “swiftly ban, then criminalize any effort to design, build, develop, test or establish a CBDC.” “Money should not be programmable by a central authority,” Davidson wrote. “Money should be a stable store of value and an efficient means of exchange, not a tool for surveillance, coercion, and control. Sound money facilitates permissionless, peer-to-peer transactions.”
Last week, Rep. Tom Emmer (R-MN) re-introduced a bill that would block efforts from the Fed and Biden administration to develop and institute a central bank digital currency (CBDC) that he believes would be used to "undermine the American way of life." “The administration has made it clear: President Biden is willing to compromise the American people’s right to financial privacy for a surveillance-style CBDC," Emmer said during a Sept. 13 press conference. “If not designed to be open, permissionless, and private – emulating cash – a government-issued CBDC is nothing more than a CCP-style surveillance tool that would be used to undermine the American way of life," he said. Emmer's move comes after a fellow Republican lawmaker accused the Federal Reserve of quietly working on a CBDC — which he has likened to “building the financial equivalent of the Death Star.” For the uninitiated, the Death Star is a moon-shaped space station and superweapon featured in the Star Wars franchise. In a July outburst on X (formerly Twitter), Rep. Warren Davidson (R-OH) called on Congress to “swiftly ban, then criminalize any effort to design, build, develop, test or establish a CBDC.” “Money should not be programmable by a central authority,” Davidson wrote. “Money should be a stable store of value and an efficient means of exchange, not a tool for surveillance, coercion, and control. Sound money facilitates permissionless, peer-to-peer transactions.”
Cali. invests $267M in fight against retail theft
California has launched an offensive against the “brazen” criminals causing chaos in the state’s retail sector — injecting $267,118,293 into local law enforcement agencies to help them crack down on smash-and-grab robberies. The funding will be split between 55 local law enforcement agencies across the state — with 41 sheriffs’ and police departments, along with one probation department, being awarded up to $23,663,194 each. Thirteen district attorney offices will also each receive up to $2,050,000 to prevent and investigate organized retail crime and arrest and prosecute more suspects. “Enough with these brazen smash-and-grabs,” California Gov. Gavin Newsom said when announcing the grants. “With an unprecedented $267 million investment, Californians will soon see more takedowns, more police, more arrests and more felony prosecutions. “When shameless criminals walk out of stores with stolen goods, they’ll walk straight into jail cells.”
California has launched an offensive against the “brazen” criminals causing chaos in the state’s retail sector — injecting $267,118,293 into local law enforcement agencies to help them crack down on smash-and-grab robberies. The funding will be split between 55 local law enforcement agencies across the state — with 41 sheriffs’ and police departments, along with one probation department, being awarded up to $23,663,194 each. Thirteen district attorney offices will also each receive up to $2,050,000 to prevent and investigate organized retail crime and arrest and prosecute more suspects. “Enough with these brazen smash-and-grabs,” California Gov. Gavin Newsom said when announcing the grants. “With an unprecedented $267 million investment, Californians will soon see more takedowns, more police, more arrests and more felony prosecutions. “When shameless criminals walk out of stores with stolen goods, they’ll walk straight into jail cells.”
Dollar dumped? India buys UAE oil with rupees
For decades, no global currency has stood a chance of dethroning the U.S. dollar. But a growing coalition of countries is apparently seeking to do just that — and they're already making moves. The Indian government announced on Aug. 14 that the country’s leading petroleum refiner, Indian Oil Corp., used the local rupee to buy one million barrels of oil from the Abu Dhabi National Oil Company — not the U.S. dollar. This monumental transaction follows the sale of 25kg of gold from a UAE gold exporter to a buyer in India for around 128.4 million rupees ($1.54 million), according to Reuters. And with the United Arab Emirates being invited to join BRICS, a bloc of the economies of Brazil, Russia, India, China and South Africa, it's possible we'll see more global trades in currencies other than the U.S. dollar. So, what could this mean for the U.S. dollar's future?
For decades, no global currency has stood a chance of dethroning the U.S. dollar. But a growing coalition of countries is apparently seeking to do just that — and they're already making moves. The Indian government announced on Aug. 14 that the country’s leading petroleum refiner, Indian Oil Corp., used the local rupee to buy one million barrels of oil from the Abu Dhabi National Oil Company — not the U.S. dollar. This monumental transaction follows the sale of 25kg of gold from a UAE gold exporter to a buyer in India for around 128.4 million rupees ($1.54 million), according to Reuters. And with the United Arab Emirates being invited to join BRICS, a bloc of the economies of Brazil, Russia, India, China and South Africa, it's possible we'll see more global trades in currencies other than the U.S. dollar. So, what could this mean for the U.S. dollar's future?
NYC grocery billionaire says he wants to buy CNN
Another billionaire has added a media company to his wishlist: John Catsimatidis, the chairman and CEO of grocery chains Gristedes Foods and D'Agostino Supermarkets. He’s recently been telling news outlets he’d be willing to purchase CNN from Warner Bros. Discovery (NASDAQ:WBD). “I’d go run the place tomorrow morning, and all I’d want is $1 per year and a piece of the upside,” the grocery mogul told the New York Post. Catsimatidis’s comments come at a difficult time for the media outlet, which has faced declining viewership and turnover in the C-suite in recent years. On Aug. 30, CNN brought in Mark Thompson, former chief executive of the BBC and The New York Times, to replace former network head Chris Licht, who was let go in June after a brief one-year stint. Licht’s exit came shortly after the highly scrutinized Donald Trump town hall broadcast that some of the company’s most lauded reporters roundly criticized. If given the opportunity, Catsimatidis says he could run CNN better than it had been.
Another billionaire has added a media company to his wishlist: John Catsimatidis, the chairman and CEO of grocery chains Gristedes Foods and D'Agostino Supermarkets. He’s recently been telling news outlets he’d be willing to purchase CNN from Warner Bros. Discovery (NASDAQ:WBD). “I’d go run the place tomorrow morning, and all I’d want is $1 per year and a piece of the upside,” the grocery mogul told the New York Post. Catsimatidis’s comments come at a difficult time for the media outlet, which has faced declining viewership and turnover in the C-suite in recent years. On Aug. 30, CNN brought in Mark Thompson, former chief executive of the BBC and The New York Times, to replace former network head Chris Licht, who was let go in June after a brief one-year stint. Licht’s exit came shortly after the highly scrutinized Donald Trump town hall broadcast that some of the company’s most lauded reporters roundly criticized. If given the opportunity, Catsimatidis says he could run CNN better than it had been.
Sen. Tommy Tuberville's futures trades under fire
United States Senator Tommy Tuberville (R-AL) recently disclosed $250,000 in futures trading in wheat, corn, soy and cattle. On Aug. 14, Tuberville — who sits on the Senate Committee on Agriculture, Nutrition, and Forestry — reported multiple agricultural trades through June and July, all in the range of $1,000 to $15,000. The former college football coach’s trades caught the attention of Unusual Whales, a data hub dedicated to market transparency and exposing trades that may represent conflicts of interest among U.S. politicians. “He literally influences agricultural futures via legislation and is trading it actively,” Unusual Whales wrote on X, formerly known as Twitter, before pointing out Tuberville has “previously, scored some big gains on futures in wheat, corn and soy.” Tuberville, who also serves on the Senate Armed Services Committee, also made three separate purchases of stock in Humacyte (HUMA) — a small biotech company that recently shared the success of their new medical tech in helping treat Ukrainian soldiers' combat wounds — in amounts between $3,000 and $45,000. When he purchased the stock in July, the price per share was $2.87. On August 15, the stock reached its highest price since May of $4.48, Newsweek recently reported.
United States Senator Tommy Tuberville (R-AL) recently disclosed $250,000 in futures trading in wheat, corn, soy and cattle. On Aug. 14, Tuberville — who sits on the Senate Committee on Agriculture, Nutrition, and Forestry — reported multiple agricultural trades through June and July, all in the range of $1,000 to $15,000. The former college football coach’s trades caught the attention of Unusual Whales, a data hub dedicated to market transparency and exposing trades that may represent conflicts of interest among U.S. politicians. “He literally influences agricultural futures via legislation and is trading it actively,” Unusual Whales wrote on X, formerly known as Twitter, before pointing out Tuberville has “previously, scored some big gains on futures in wheat, corn and soy.” Tuberville, who also serves on the Senate Armed Services Committee, also made three separate purchases of stock in Humacyte (HUMA) — a small biotech company that recently shared the success of their new medical tech in helping treat Ukrainian soldiers' combat wounds — in amounts between $3,000 and $45,000. When he purchased the stock in July, the price per share was $2.87. On August 15, the stock reached its highest price since May of $4.48, Newsweek recently reported.
Elderly couple has house stolen by son
An elderly California couple was devastated when they were served an eviction notice in April for the home they’d been making regular payments on for two decades. Ismael and Angelita Ramirez purchased their home back in 2003 with their son, who told them they didn’t need to include their name on the title. "He told us they told him it wasn't necessary. And well, since we don't know English, that's where they lied to us," Ishmael told FOX26 News. The eviction notice reportedly stated that the owner of the home was selling the property and the couple said they later learned their son had transferred the home to a woman who sent them the notice. Although the couple tried to get legal help, there wasn’t much the lawyer could do since the house wasn’t in their name. “We thought, why did our boy do that to us if he knew the house was ours?" Ishmael said.
An elderly California couple was devastated when they were served an eviction notice in April for the home they’d been making regular payments on for two decades. Ismael and Angelita Ramirez purchased their home back in 2003 with their son, who told them they didn’t need to include their name on the title. "He told us they told him it wasn't necessary. And well, since we don't know English, that's where they lied to us," Ishmael told FOX26 News. The eviction notice reportedly stated that the owner of the home was selling the property and the couple said they later learned their son had transferred the home to a woman who sent them the notice. Although the couple tried to get legal help, there wasn’t much the lawyer could do since the house wasn’t in their name. “We thought, why did our boy do that to us if he knew the house was ours?" Ishmael said.
What is the current US inflation rate?
The current annual inflation rate is 3.7%, compared to 3.2% last month. Inflation rose 0.6% month-over-month in August, up from July's increase of 0.2%, according to the latest report from the U.S. Bureau of Labor Statistics, released on September 13, 2023. Back in June 2022, inflation hit a 40-year high of 9.1%.
The current annual inflation rate is 3.7%, compared to 3.2% last month. Inflation rose 0.6% month-over-month in August, up from July's increase of 0.2%, according to the latest report from the U.S. Bureau of Labor Statistics, released on September 13, 2023. Back in June 2022, inflation hit a 40-year high of 9.1%.
US Energy Secretary's EV tour goes wrong
Government officials are just like us: they get into awkward electric vehicle (EV) charging situations. Here’s what happened: According to NPR, in an effort to show Americans the benefits of EVs, Secretary of Energy Jennifer Granholm and her team were taking a four-day road trip from Charlotte, N.C. to Memphis, Tenn. In a suburb of Augusta, Ga., however, Granholm’s team ran into a common hiccup for EV drivers: there simply aren’t enough chargers to service all the vehicles on the road. When the first wave of the fleet arrived at a local charging station, they discovered that one charger was broken and the others were occupied. When a working charger opened up, a staffer parked a gas car there to save the spot for Granholm. But when a family with a newborn in the car arrived and saw Granholm’s staff in a gas car blocking the last EV charger, they called the cops. Fortunately, they were able to resolve the situation and Granholm and the family were both able to charge their EVs. But this trip does highlight some of the issues with EVs. Here’s how to figure out if they’re right for you.
Government officials are just like us: they get into awkward electric vehicle (EV) charging situations. Here’s what happened: According to NPR, in an effort to show Americans the benefits of EVs, Secretary of Energy Jennifer Granholm and her team were taking a four-day road trip from Charlotte, N.C. to Memphis, Tenn. In a suburb of Augusta, Ga., however, Granholm’s team ran into a common hiccup for EV drivers: there simply aren’t enough chargers to service all the vehicles on the road. When the first wave of the fleet arrived at a local charging station, they discovered that one charger was broken and the others were occupied. When a working charger opened up, a staffer parked a gas car there to save the spot for Granholm. But when a family with a newborn in the car arrived and saw Granholm’s staff in a gas car blocking the last EV charger, they called the cops. Fortunately, they were able to resolve the situation and Granholm and the family were both able to charge their EVs. But this trip does highlight some of the issues with EVs. Here’s how to figure out if they’re right for you.
Americans have never been wealthier, says the Fed
U.S. household wealth increased by $5.5 trillion to a record $154.3 trillion in the second quarter of this year, according to data from the Federal Reserve Bank of New York. The wealth boost was spurred by gains in stock and house prices — which remain the largest components of household net worth. In the three months ending June 30, the value of directly and indirectly held corporate equities jumped by $2.6 trillion to $44.7 trillion. Meanwhile, the value of household real estate increased by $2.4 trillion to $44.5 trillion. This positive data (which isn’t adjusted for inflation) is a welcome sign of recovery after inflation drove a drop in the value of those assets in the last half of 2022. And it should give Americans more confidence to weather future financial storms — but will it?
U.S. household wealth increased by $5.5 trillion to a record $154.3 trillion in the second quarter of this year, according to data from the Federal Reserve Bank of New York. The wealth boost was spurred by gains in stock and house prices — which remain the largest components of household net worth. In the three months ending June 30, the value of directly and indirectly held corporate equities jumped by $2.6 trillion to $44.7 trillion. Meanwhile, the value of household real estate increased by $2.4 trillion to $44.5 trillion. This positive data (which isn’t adjusted for inflation) is a welcome sign of recovery after inflation drove a drop in the value of those assets in the last half of 2022. And it should give Americans more confidence to weather future financial storms — but will it?