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Excess Savings

All articles tagged with #excess savings

economy2 years ago•1 min saved

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.

via Business Insider|

#consumer-spending #credit-cards #economy

economy2 years ago•1 min saved

"San Francisco Fed Predicts Depletion of COVID-era Savings for Households"

The San Francisco Fed predicts that households' excess savings, which had reached about $500 billion in March, are likely to be depleted by the third quarter of 2023. However, estimating the exact amount of excess savings is challenging and subject to uncertainty. Despite this, retail sales have seen a significant increase, surprising economists, and the Atlanta Fed's GDPNow model estimates strong economic growth in the third quarter. The yield on the 10-year Treasury has also reached its highest level since 2008.

via MarketWatch|

#economic-recovery #economy #excess-savings

finance2 years ago•1 min saved

The Troubling State of Retirement Savings in America.

The US personal savings rate remains below its historical average, with a seasonally adjusted annual rate of personal saving at 4.6% in February, well below the average annual rate of more than 8%. However, Americans have trillions in excess savings compared with expectations leading up to the pandemic, which has helped buoy the economy. Experts believe these stockpiles of cash will begin to dwindle in 2023 due to high inflation and devaluing savings held in low return positions such as cash, which weighs on consumer spending.

via CNBC|

#consumer-spending #excess-savings #finance