UK household wealth has tanked and it's a sign of what could happen in the US

• UK's household wealth dropped due to rising interest rates, with regions like Scotland hit hardest.
• The US faces a similar risk with many Americans' wealth tied up in home equity and retirement accounts.
• Higher-for-longer interest rates could make the issue worse if housing prices fall sharply.

Household wealth in the UK has fallen sharply over the last two years in part thanks to high interest rates, and the factors that led to the drop suggest a similar scenario could be heading for the US.