Categories: Market Overview

Total U.S. debt surges to $55.9 trillion amid big increases in corporate and government borrowing

Debt surged and household net worth tumbled in the first three months of the year as the initial impact of the coronavirus pandemic hit, according to Federal Reserve data released Thursday.

Total domestic nonfinancial debt jumped by 11.7% to $55.9 trillion, the Fed said in its quarterly statement on domestic financial accounts. Debt had increased by 3.2% in Q4 of 2019.

At the same time, plunging stock market values took a bite out of net worth, which fell $7.4 trillion to $110.8 trillion. Wall Street, however, staged a sharp recovery off its March lows, so much of that loss likely has been made up. Equity values fell by $7.8 trillion, while real estate value increased by $400 billion in the first quarter.

The biggest debt gain come on the business side, rising 18.8%, while federal government debt also jumped 14.3%. Total federal debt recently passed $26 trillion.

Household debt rose 3.9% due in large part to an increase on the mortgage side of 3.2%. Consumer debt rose 1.6%.

The increases in debt and decrease in household worth came as the longest expansion in U.S. history came to an end.

Total U.S. debt surges to $55.9 trillion amid big increases in corporate and government borrowing, CNBC, Jun 11

AddThis Website Tools
The FxPro News Team

This team of professional journalists announces the most interesting and influential articles from the major financial media as a brief summary. All such news may have sufficient potential to affect the course of trading assets.

Share
Published by
The FxPro News Team
Tags: U.S. debt

Recent Posts

Tesla Wave Analysis – 21 March 2025

Tesla: ⬆️ Buy - Tesla reversed from support level 220.00 - Likely to rise to…

1 day ago

Google Wave Analysis – 21 March 2025

Google: ⬆️ Buy - Google reversed from key support level 160.00 - Likely to rise…

1 day ago

Silver Wave Analysis – 21 March 2025

Silver: ⬇️ Sell - Silver reversed from resistance level 34.00 - Likely to fall to…

1 day ago

USDCHF Wave Analysis – 21 March 2025

USDCHF: ⬆️ Buy - USDCHF reversed from support level 0,8750 - Likely to fall to…

1 day ago

What’s next: Flash PMIs, UK CPI & US PCE

The week ahead includes the release of the PMI business activity indexes for March, the…

2 days ago

Gold: Growth Opportunities

Gold has been in an uptrend, reaching record highs and offering growth opportunities. However, caution…

2 days ago