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NAFCU Chief Economist on CNBC: Savings have eroded
NAFCU Chief Economist and Vice President of Research Curt Long appeared on CNBC to discuss how Americans’ personal savings have been impacted by recent economic turmoil.
Amid the coronavirus pandemic, households across the U.S. were saving as much as 30 percent of their income. “Something like $2 [trillion] to $2.5 trillion above what we would have otherwise expected were saved by American households,” said Long. He attributed this to government stimulus checks and many people not spending money on things they normally did.
However, the seasonally adjusted annual rate of personal saving has dropped significantly over the last year. “Over the last 9 to 12 months, that stash of savings has eroded,” said Long.
Long explained that the rising interest rate environment may have a large impact on this. As far as moving forward, he recommended families utilize high-yield savings accounts to help bolster their savings.
Watch the full video. NAFCU will continue to update credit unions on economic data via NAFCU Today; for more insights from NAFCU’s Research Team, view all of NAFCU's Macro Data Flash reports.