According to the Federal Reserve’s Survey of Consumer Finances, less than 7 percent of total household assets are directly held in transaction accounts, certificates of deposit, savings bonds, and bonds.1 Instead, the bulk of household wealth is held in stocks, retirement accounts, business equity, and real estate.
For these other types of assets, rates of return depend primarily on the strength of the economy and how fast the economy is growing. Thus, these returns should be supported, over time, by the accommodative monetary policy that we have in place.