The Looming Recession: Americans' Dried-Up Stimulus Savings

As the pandemic-related savings and government aid that helped prop up the U.S. economy dwindle, low- and moderate-income households are facing new strains and the nation is at risk of slipping into a recession. Americans whose COVID cash reserves are running low are putting off home projects, eating out less, canceling subscriptions, and taking out loans to make ends meet. The shrinking savings, along with rising credit card interest rates, high inflation, and a cooling job market, could lead to a significant slowdown in consumer spending, which makes up 70% of economic activity.