As inflation spirals out of control and pandemic-related stimulus runs dry, Americans are increasingly finding it hard to save money.
This past April, the U.S. personal savings rate fell to 4.4%. According to data from the U.S. Commerce Department, this is the lowest this metric has been since September 2008, Yahoo Finance reported.
“In a typical cycle, a sharp drop in the savings rate would be a warning sign about the sustainability of spending,” Wells Fargo economists, led by Tim Quinlan, wrote in a public note this past week.
The note continued, “Because balance sheets are in such better shape, we see less cause for concern for today. In fact, it is actually our baseline forecast for the saving rate to fall below its prior-cycle average of 7.2% through the end of 2023.”- READ MORE