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Inflation has practically wiped out excess savings from the pandemic, according to an analysis from Bespoke Investment.
Inflation has practically wiped out excess savings from the pandemic, according to an analysis from Bespoke Investment.

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  • The US economy doesn't have any dry powder left as inflation has eaten through household savings.
  • Cash savings as a percentage of total consumption have returned to 2019 levels for most Americans.
  • Consumer spending could start to pull back, pushing the economy into a slowdown, experts warn.

The dry powder of cash savings that was expected to cushion the economy has run out, as inflation has practically wiped out US households' excess savings, according to an analysis from Bespoke.

Tags
economy, Markets, economy, economy-outlook, Recession, recession-2024, recession-outlook, household-savings, Inflation, consumer-spending, economic-slowdown, Prices
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The economy has run out of dry powder as inflation has slashed excess household…