Americans on the Brink of Depleting Pandemic Savings, SF Fed Study Warns
Americans are rapidly depleting the excess savings they accumulated during the COVID-19 pandemic, with estimates suggesting that these savings could be depleted by the third quarter of 2023. The San Francisco Federal Reserve's research highlights the concern that the depletion of these savings, which have acted as a safety net for many families, could lead to a slowdown in consumer spending. As Americans increasingly rely on credit cards to cover expenses, credit card debt has surpassed $1 trillion for the first time ever. Delinquency rates are also showing a slight uptick, raising concerns as student loan payments are set to resume in the fall.