Government debt in Q2 rose 59% amid efforts to curb coronavirus

Government debt in Q2 rose 59% amid efforts to curb coronavirus

U.S. The Capitol Building is located in Washington DC on Tuesday, September 8, 2020.

Stephanie Reynolds | Bloomberg | Getty Images

U.S. Government and business debt rose in the second quarter Nationwide epidemic of corona virus, Such as individual networth roses and consumer credit sank to record levels.

A Federal Reserve report released Monday shows that the U.S. Total household balance sheets in April rose to about 9 119 trillion during the April-June period, up 6.8% from the first quarter.

The increase in net worth was almost exclusively in the stock market.

Thanks a lot Unprecedented financial and financial stimulus, The S&P 500 rose 20% during the quarter. As a result, networth grew by% 7.7 trillion, or 75% of the total. Real estate contributes 500 million.

As financial wealth climbed, debt, at least at the domestic level, went nowhere.

In fact, consumer credit has fallen to a post-World War II record%. %% year-on-year, with credit card balances falling from ૨ 2.03 trillion to 3. 3.8 billion. Student loan debt has changed slightly to 68 1.68 trillion, while auto toe loans have shrunk to just 1. 1.2 trillion.

It came as the federal government and industries continued to raise debt. Overall, domestic total financial debt is .3 59.3 trillion.

The federal government’s debt spread at a rate of 58..9% as Congress passed the CARES Act to support the economy that went into lockdown at the end of the first quarter to combat the Covid-19 spread.

Financial business debt rose 1 percent, which was actually below 1.4% in Q1, but is still lower than the pre-epidemic level, which dates back to at least 1980. State Government Debt%. increased by%, the fastest since 2009.

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The data comes from a survey of the Fed’s quarterly financial accounts, formerly known as the Flow of Funds.

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