Higher stock prices, home values lift US household wealth
Household wealth, or net worth, reflects the value of homes, stocks and other assets minus mortgages, credit card debt and other borrowing.
The ratio of household debt to income — a key measure of whether consumers are borrowing too much — stood at 106.8 percent in the fourth quarter.
Greater household wealth can trigger more consumer spending, a key fuel for the U.S. economy.
The strong dollar is dragging down exports of manufactured goods by making them more expensive overseas, while new home sales and construction may level off this year.
Higher stock and home prices can make consumers feel richer, a phenomenon economists call the "wealth effect."