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Americans Hold Huge Pile of Cash That’s Key to Economic Recovery

  • Money supply soars as Fed, fiscal stimulus reaches households
  • Some fear inflation, others see more risk if money not spent
The 145th Running Of The Kentucky Derby
Photographer: Luke Sharrett/Bloomberg

Just like back in 2008, the Federal Reserve has pumped record amounts of cash into the financial system this year to stave off an economic collapse. But unlike in 2008, when that money mostly piled up in banks’ accounts at the Fed, funds are pouring into Americans’ checking accounts.

And that’s a big distinction.