Americans are likely to soon start depleting the excess savings they began to accumulate during the Covid-19 pandemic when the national fiscal response was strong and consumers spent less, according to a recent Federal Reserve Bank of San Francisco blog.
That savings drawdown is likely to start as early as this quarter, according to the blog by Fed researchers Hamza Abdelrahman and Luiz E. Oliveira. The blog, which updates the pair’s May 8th study of household saving patterns since the onset of the pandemic recession, defines excess savings as the difference between actual savings and the pre-recession trend.
