CEOs warn that US households are burning through savings at an alarming rate, and could run out with
Dominick Reuter Jun 2, 2022, 2:43 PM
US households are burning through savings at an alarming rate, and could run out within months
US households gained about $2.5 trillion in excess savings since March 2020 from stimulus and higher wages.
The extra cash has helped keep consumer spending strong, which in turn has driven prices higher.
Now inflation is gnawing away at those savings, and CEOs warn they could run out within months.
The US economy has been mostly beating expectations for two years now, thanks in large part to consumers eagerly buying just about everything that companies could sell them.
Much of this spending was powered by an estimated $2.5 trillion in excess savings that households accumulated due to federal pandemic aid and higher wages at work.
One result of this roaring consumer demand has been an increase in the price of goods and services, otherwise known as inflation.
But with inflation at a 40-year high this year, Americans are finding their monthly income isn't going as far as it used to.