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Savings & Retirement

White House Claim of Inflation Cushion Undercut by Savings Data

  • Yellen, Deese have cited Americans’ bank accounts as buffers
  • Fed data show lower-income people have seen savings drop
Shoppers inside a grocery store in San Francisco.
Shoppers inside a grocery store in San Francisco.Photographer: David Paul Morris/Bloomberg

President Joe Biden’s aides have repeatedly pointed to Americans’ robust pandemic-era savings as a cushion against inflation -- yet the money is rapidly evaporating for 26 million low-income families.

From Treasury Secretary Janet Yellen to Press Secretary Karine Jean-Pierre, top administration officials are counting on cash that households built up in the Covid years to serve as a buffer against consumer prices rising at the fastest clip in four decades.