Despite the ongoing warnings of a US economic recession, new data from the Federal Reserve shows that Americans are currently at their wealthiest state in history. It can be said that they have never been this wealthy before.

According to the latest "Financial Accounts of the United States" report released by the Federal Reserve on Thursday, Americans' accumulated net assets as of the end of the second quarter amounted to $163.8 trillion, an increase of nearly 2% from the first quarter's $161 trillion, mainly due to the continuous rise in the US real estate market.

Specifically, the report states that real estate value increased by $1.8 trillion, and stock value increased by $700 billion, driving this growth. The US stock market hit record highs in June, and the S&P/Case-Shiller Home Prices Indices also reached historical highs.

In addition, with the increase in net assets, household debt increased by nearly 1% from the first quarter, reaching $20.2 trillion, while the amount of cash and cash-like securities held slightly decreased to $18.44 trillion.

Overall, this data paints a healthy financial picture for American consumers, who have ample cash and hold a large amount of appreciating assets. American consumers are the strongest pillar of the US economy, which may be one of the reasons why the US economy has remained resilient and the predicted recession has not truly arrived even with the significant interest rate hikes by the Federal Reserve in the past two years.

David Rosenberg, a top economist and the president of Rosenberg Research, stated in a report last month that robust spending data in July may be boosted by the "wealth effect", meaning that when consumers see their net assets rise, they have confidence to spend more money, and vice versa.

However, at the same time, he also warns that the possibility of a US economic recession is increasing.

In the latest report, Rosenborg compiled 20 recession indicators, of which 9 have been triggered. Some of the flashing recession signals include the Sam Rule, the Leading Economic Indicator Index, and the inverted yield curve. Recession indicators in the manufacturing and transportation industries have not been triggered, and these two industries remain robust.

"Currently, 45% of the economic recession indicators we are tracking have been triggered. And since 1999, this situation has never occurred without a recession." He added.

On the other hand, what drives American consumers is not only the continuously growing net assets, but also the rising wage.

Data released earlier this week by the US Census Bureau showed that the median household income in the United States in 2023 increased by 4% to a historic high of $80,610. This significant growth represents the largest annual increase in inflation-adjusted income since 2019.

Therefore, overall, according to the latest economic data, the situation of American consumers seems to remain robust.