Household wealth in the United States fell by a record amount in the second quarter, Reuters reported. A new report from the Federal Reserve shows that household wealth fell by $6.1 trillion from April 1 through June 30. It is the second consecutive quarter that overall household wealth has dropped, led by a $7.7 trillion decline in the stock market.
Since topping out at a record $150 trillion at the end of 2021, the household net worth has declined in 2022, falling to $143.8 trillion.
The $6.1 trillion drop just eeked out the previous record, which was set in the second quarter of 2020 following the start of the coronavirus pandemic. While the decline this year was higher in terms of overall value by just $30 billion, the 5.2% drop in household wealth in 2020 still holds the record for the largest percentage decline.
Despite the decline in household wealth, the Federal Reserve report did show that people are saving more. According to Bloomberg, Americans have a record $4.9 trillion in checking, savings, and money market accounts.