Customers use an ATM at a Bank of America. Photo by Justin Sullivan/Getty Images)
- US personal savings have collapsed by $5.5 trillion since April 2020, spelling trouble for the economy.
- Historically high inflation has been the key reason for the decline in American consumers’ cash reserves.
- With the return of student loan bills, savings and spending levels could worsen.
The US economy has held up remarkably well this year, defying recession predictions, thanks in part to Americans’ pandemic-era savings that have cushioned consumer spending.
But that support is now running low.
Americans’ personal savings have collapsed by an eye-watering $5.5 trillion since April 2020 thanks to soaring inflation, according to Barchart.com – and that could spell trouble for the economy.
Such reserves have now fallen to levels lower than before COVID-19, the financial data provider said in a tweet.
US household savings surged…
