Excess Savings and the Consumer

Tani Fukui
SEP 14, 2022

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Volatility, Not Recession

Global Risks 2022 Mid-Year Review

Key Takeaways

  • Household income exceeded spending by a total of $5.5 trillion during the pandemic, or 72% above what it might have been in normal times.
  • Consumers have been spending, and they likely have sufficient savings to stave off a recession into 2023 despite Fed actions toward reducing demand.