Topics

Posted 9/5/2023, 4:35:00 PM

US households are on the brink with excess savings likely to be depleted by month-end, San Francisco Fed says

US household savings accumulated during the pandemic are expected to be depleted by the end of September 2023, as the excess savings have steadily declined and are projected to continue falling at a rate of $100 billion per month, potentially impacting consumer spending and the wider economy.

businessinsider.com

Relevant topic timeline:

8/21/2023

Fear Over The Job And Stock Market Grows, As Fed Reports Americans Have Spent Their Pandemic Savings

Consumers have spent most of their excess savings from the Covid-19 pandemic, and this trend is expected to continue until the third quarter of 2023, potentially leading to a slowdown in economic growth and job market expansion.

8/25/2023

Consumers are richer than they think they are, says Bank of America. They just need to stop comparing their savings to those during lockdown

US consumer spending is showing resilience and robust growth, although signs of a slowdown are emerging, potentially related to the public's perception of a deteriorating financial situation due to high inflation and rising interest rates, despite the fact that households still have higher deposits compared to pre-pandemic levels.

8/28/2023

US Money Supply Surged 375% in 3 Years But Dollar Still King For Global Transactions

The United States' pandemic-induced stimulus measures have led to the printing of nearly 80% of all dollars in circulation since 2020, resulting in severe detrimental effects on the economy, including surging prices and inflation.

8/29/2023

The Great Resignation Is Officially Over

The rate of people quitting their jobs has returned to pre-pandemic levels, indicating a decline in workers' advantage and a cooling labor market influenced by the Federal Reserve's interest rate hikes, which have led to worsening job prospects and decreased consumer confidence.

8/31/2023

Struggling US households may soon max out their credit cards as banks get skittish

Consumer spending is driving third-quarter GDP growth, but unsustainable spending habits, tightening lending standards, and the depletion of pandemic savings may lead to a decline in consumer spending in early 2024.

8/31/2023

US consumer spending accelerates; declining savings a red flag

U.S. consumer spending increased in July, boosting the economy and reducing recession risks, but the pace is likely unsustainable as households dip into their savings and face potential challenges from student debt repayments and higher borrowing costs.

9/5/2023

Goldman Sachs chief economist: US consumer won't break in 2024

Goldman Sachs chief economist Jan Hatzius predicts that US consumers will remain resilient in 2024, with a projected growth of around 3% in real disposable household income, indicating that a decline in real consumer spending is unlikely despite signs of stress.

9/10/2023

Strong Consumer Spending Supports Stocks, But Inflation and Rate Hikes Remain Key Data Points

Consumer spending has remained resilient, preventing the US economy from entering a recession, and this trend will likely continue due to low household debt-to-income levels.

9/11/2023

Survey Shows Investors Brace for Decline in US Consumer Spending, Stocks at Risk

The US consumer is predicted to experience a decline in personal consumption in early 2024, which could lead to a potential recession and downside for stocks, as high borrowing costs and dwindling Covid-era savings impact household budgets.

9/12/2023

US Household Incomes Fall Most Since 2010 as Inflation Outpaces Wages

US household income fell by the most in over a decade in 2022, showing the impact of rising costs and the expiration of pandemic relief programs, with the median income dropping 2.3% and marking the third consecutive annual decline, contributing to concerns about the financial well-being of American families.

9/13/2023

Experts Predict Savings Account Rates to Hold Steady in 2023 Before Potential Decreases in 2024

Many experts predict that savings account interest rates will remain steady in 2023 but could start dropping in 2024.

Topics

Posted 9/5/2023, 4:35:00 PM

US households are on the brink with excess savings likely to be depleted by month-end, San Francisco Fed says

businessinsider.com

Relevant topic timeline:

8/21/2023

Fear Over The Job And Stock Market Grows, As Fed Reports Americans Have Spent Their Pandemic Savings

8/25/2023

Consumers are richer than they think they are, says Bank of America. They just need to stop comparing their savings to those during lockdown

8/28/2023

US Money Supply Surged 375% in 3 Years But Dollar Still King For Global Transactions

8/29/2023

The Great Resignation Is Officially Over

8/31/2023

Struggling US households may soon max out their credit cards as banks get skittish

8/31/2023

US consumer spending accelerates; declining savings a red flag

9/5/2023

Goldman Sachs chief economist: US consumer won't break in 2024

9/10/2023

Strong Consumer Spending Supports Stocks, But Inflation and Rate Hikes Remain Key Data Points

Consumer spending has remained resilient, preventing the US economy from entering a recession, and this trend will likely continue due to low household debt-to-income levels.

9/11/2023

Survey Shows Investors Brace for Decline in US Consumer Spending, Stocks at Risk

9/12/2023

US Household Incomes Fall Most Since 2010 as Inflation Outpaces Wages

9/13/2023

Experts Predict Savings Account Rates to Hold Steady in 2023 Before Potential Decreases in 2024

Many experts predict that savings account interest rates will remain steady in 2023 but could start dropping in 2024.