Consumers’ Pandemic Cash Stash Could Dry Up in 14 Months

advertisement

Americans built up quite a nest egg during the pandemic—but at the current rate of spending, it would be gone in 14 months, according to one estimate. 

That’s what economists at Wells Fargo Securities calculated when they crunched the numbers on how much extra cash U.S. households had put away during the pandemic, and how fast we’re spending it down because of inflation.

The pandemic’s odd financial circumstances allowed many households to sock away money for a rainy day. No one is sure exactly how much, but Wells Fargo economists figure that as of September 2022, we had $1.2 trillion in excess savings due to the pandemic, that is, savings beyond what we would have put away in normal times.

Government pandemic relief programs such as stimulus checks, a good job market, and a lack of activities to spend money on during the early days of the pandemic have all helped people stockpile cash. However, people are spending down that massive reserve by $88 billion on average every month, judging by data from the Department of Commerce.

That “extra” cash is serving as a cushion against inflation, allowing people to continue spending despite rapidly rising prices for most things people buy. That’s complicating the Federal Reserve’s efforts to clamp down on inflation by raising interest rates in order to discourage spending and give supply and demand a chance to rebalance. 


Have a question, comment, or story to share? You can reach Diccon at [email protected].


Related Article
Economic Security: Meaning, History in the US, FAQs
The Prisoner’s Dilemma in Business and the Economy
Fed’s Preferred Inflation Gauge Rose More Than Expected in August 2022
Glass Steagall Act of 1933, Its Purpose and Repeal
70pc of Hongkongers dread rising living costs
200 family offices target will be met, says Hui
Nezha 2 becomes China's biggest box office hit
State Pavilia's second batch priced higher
©2025 EcoInvest All Rights Reserved
Privacy Policy
Terms of Service
  •  HOME
  •  HOT ARTICLES
  •  RECOMMENDED
  •  LATEST NEWS
  •  POPULAR POSTS
  •  RELATED ARTICLE
  •  PRIVACY POLICY
  • Home
  • HOT ARTICLES
  • RECOMMENDED
  • LATEST NEWS
  • POPULAR POSTS
  • RELATED ARTICLE
  • PRIVACY POLICY