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Consumer Financial Health: Difference between revisions
→Excess Savings
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* The saving rate stands at 4.7%. The saving rate has come down significantly since the pandemic and, is currently even below the pre-pandemic levels of 8%. <ref>https://fred.stlouisfed.org/series/PSAVERT</ref> | * The saving rate stands at 4.7%. The saving rate has come down significantly since the pandemic and, is currently even below the pre-pandemic levels of 8%. <ref>https://fred.stlouisfed.org/series/PSAVERT</ref> | ||
=== | === Excess Savings === | ||
[[File:Excess savings.PNG|thumb|https://am.jpmorgan.com/content/dam/jpm-am-aem/global/en/insights/market-insights/guide-to-the-markets/mi-guide-to-the-markets-us.pdf]] | [[File:Excess savings.PNG|thumb|https://am.jpmorgan.com/content/dam/jpm-am-aem/global/en/insights/market-insights/guide-to-the-markets/mi-guide-to-the-markets-us.pdf]] | ||
The Federal Reserve estimated that through the summer of 2021, U.S. households accumulated $2.3 trillion in excess pandemic savings. According to the Federal Reserves, they stood at $1.7 Trillion as of mid-2022, and recent reports from JPM estimate excess savings are $900 billion at the beginning of 2023. | The Federal Reserve estimated that through the summer of 2021, U.S. households accumulated $2.3 trillion in excess pandemic savings. According to the Federal Reserves, they stood at $1.7 Trillion as of mid-2022, and recent reports from JPM estimate excess savings are $900 billion at the beginning of 2023. | ||