Interest rates are higher and so are prices, credit is drying up and there are signs that the labor market is finally softening.
The problem is that no one, not even the Federal Reserve, knows how much longer the American consumer can keep on spending.
Personal saving rates soared as a result, with US households amassing about $2.3 trillion in savings in 2020 and through the summer of 2021, according to Federal Reserve economists.
Economists know that savings must be dissipating, but haven’t quite figured out just how much of that money is left.
Just a few weeks later, economists at the Federal Reserve Board of Governors in Washington said just the opposite.
Persons:
New York CNN — There’s, we’ve, ”, Torsten Slok, Lydia Boussour, Hanna Ziady, Xiaofei Xu, Beijing’s, Laura He, Wei Jianguo, Funflation, Beyflation — Taylor Swift, Fisher, don’t
Organizations:
CNN Business, Bell, New York CNN, Federal Reserve, Commerce Department, Federal Reserve Bank of San, Governors, Apollo Global Management, Consumer, Reuters, China Daily, Fisher Investments, National Statistics
Locations:
New York, Federal Reserve Bank of San Francisco, Washington, United States, EY, Boussour, China, Beijing, Japan, Italy, Netherlands, Swiftflation