Finance

America’s Household Wealth Nosedives In Record Drop

(Photo by ASIF HASSAN/AFP via Getty Images)

Sarah Weaver Staff Writer
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American household wealth fell by a record drop in the second quarter, according to a Federal Reserve report released Friday.

Household net worth fell by $6.1 trillion between the end of March and the end of June, Reuters reported. Through the month of June, Americans’ collective wealth fell by more than $6.2 trillion from $150 trillion at the close of 2021.

Economic woes are continuing to afflict Americans. More than half of Americans say rising prices are making their lives worse, a percentage which increased steadily from previous months, according to a Gallup poll published in September. Seventy-four percent of respondents who said their financial situation was severe made less than $48,000 a year, according to the poll. (RELATED: Single Women Are Wealthier? Not So Fast, Virginia Scholar Says)

An economist at the Heritage foundation estimated the average American worker has lost almost $3,400 in annual income since Biden became president.

A Federal Reserve survey released Wednesday found the American economy had remained “generally weak,” reporting that regional banks across the country have experienced contractions.

Treasury Secretary Janet Yellen is persistently optimistic, however. Speaking Thursday at a Ford electric vehicle center in Michigan, Yellen said that, “by any traditional metric,” the U.S. has experienced one of the quickest economic recoveries in modern history since the start of the pandemic.