Inflation & Prices
Inflation Has Depleted Pandemic-Era Savings for Many Americans
- Inflation, not reckless spending, eroding savings: Santander
- Consumer spending hinges even more on a strong labor market
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Inflation has sapped 40% of Americans of their pandemic savings, making consumer spending even more reliant on the job market.
Generous government stimulus payments and lock-downs that kept people at home led to “windfall” savings, Stephen Stanley, chief US economist at Santander US Capital Markets, said in a research note Monday. How much of it remains has been a moving target, with economists upping their estimate of pandemic-era savings last month after earlier saying it was nearly gone.