U.S. household wealth drops for first time in 2 years
U.S Dollars. /Getty Images

U.S Dollars. /Getty Images

U.S. household wealth declined for the first time in two years in the first quarter of 2022 as a drop in the stock market overwhelmed continued gains in home values, a Federal Reserve report on Thursday showed.

Household net worth edged down to $149.3 trillion from a record $149.8 trillion at the end of last year, the Fed's quarterly snapshot of the national balance sheet showed.

The drop was driven by a $3 trillion fall in the value of corporate equities - a plunge that has worsened in the current quarter - while real estate values climbed another $1.7 trillion.

It was the first decline in household wealth since the first quarter of 2020, when the onset of the coronavirus pandemic shook financial markets and caused a short but deep recession.

Still, the report showed household balance sheets overall remained healthy through the first three months of the year - some $32.5 trillion above pre-pandemic levels - and looked likely to continue to support strength in consumer spending in the face of high inflation.

(With input from Reuters)

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