Tech Insider
Economy
Customers use an ATM at a Bank of America
Customers use an ATM at a Bank of America.

Photo by Justin Sullivan/Getty Images)

  • US personal savings have collapsed by $5.5 trillion since April 2020, spelling trouble for the economy. 
  • Historically high inflation has been the key reason for the decline in American consumers' cash reserves. 
  • With the return of student loan bills, savings and spending levels could worsen. 

The US economy has held up remarkably well this year, defying recession predictions, thanks in part to Americans' pandemic-era savings that have cushioned consumer spending.

But that support is now running low.

Tags
economy, Markets, US Economy and Markets, US economic outlook, Recession, Consumers, strong consumer, Savings, us consumer spending, Inflation, Interest Rates, Pandemic savings, US economic forecast
Source
A $5.5 trillion savings wipeout is threatening to cripple the US economy