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Total household debt in the US declined by $34 billion, or 0.2%, in the second quarter to mark the first negative reading since 2014, the Federal Reserve Bank of New York noted in its latest Quarterly Report on Household Debt and Credit.

“Reflecting the sharp decline in overall consumer spending due to the COVID-19 pandemic and related social distancing orders, credit card balances fell by $76 billion, the steepest decline in the history of the data,” the NY Fed added in its publication. “In total, non-housing balances (including credit card, auto loan, student loan, and other debts) saw the largest decline in the history of this report, with an $86 billion decline.”

Market reaction

The US Dollar Index edged lower after this report and was last seen gaining 0.12% on the day at 92.92.Finally,