06-28-2020, 08:14 AM
In the US, the personal savings rate was running 7-8% prior to the pandemic. In March, it jumped to 13% and in April to 33%. The April numbers would include a lot of the stimulus payments.
We should get the May number soon, and it will surely be higher than the levels previously. Federal fiscal programs will need to be implemented in targeted, surgical fashion in order to be effective. The reopening will not proceed as quickly or as safely as necessary to disgorge enough savings from the super savers to get the economy back to an acceptable level.
We should get the May number soon, and it will surely be higher than the levels previously. Federal fiscal programs will need to be implemented in targeted, surgical fashion in order to be effective. The reopening will not proceed as quickly or as safely as necessary to disgorge enough savings from the super savers to get the economy back to an acceptable level.