Americans Set to Deplete Pandemic Savings as Q3 Ends

Americans are depleting their pandemic savings and could run out of funds by the end of the third quarter, according to a study by the Federal Reserve Bank of San Francisco. As of June, US households held less than $190 billion of aggregate excess savings. The study highlights that consumers have been spending beyond their means, with government data showing lower household disposable income and higher personal consumption. This trend, coupled with increased credit card debt, poses challenges for the US economy, as consumer spending is a key driver of growth.