Desperate American Families Use $114Bn of Savings to Cope with Soaring Inflation
The Federal Reserve Economic Data revels shocking figures
Despite President Biden's claim that Americans are saving more since he took office, data shows the complete opposite with inflation eating into rainy-day funds.
The Federal Reserve Economic Data (FRED) showed that the average American had just 5.4 percent of their paycheck left to save after covering living expenses.
It now sits much lower than the all-time record of 33.8 percent that was recorded in April 2020.
It also sits below the average amount Americans had available to save each month over the last decade.
Prior to the May figures, the lowest National Personal Savings rate over the last decade was recorded in January 2013, when it hit 5.6 percent.
By the end of 2021, Americans had accumulated a total of $2.7 trillion in savings.
They have since burned through about $114 billion of that vast savings pile, meaning that just over $2.5 trillion in savings remains.
Biden declared: "Since I took office, families have increased their savings and have less debt."
The claim also goes against the fact that there are historic amounts Americans now owe on credit cards.
Overall credit card debt rose 20% during the month of April to $1.103 trillion. The previous pre-pandemic record was $1.1 trillion.
As The Daily Mail reported:
Americans' savings accounts have also shrunk by more than $9,000 over the past year - from $73,100 in 2021 to $62,086 in 2022 - according to a survey from wealth management company Northwestern Mutual.
During the first year-and-a-half of the COVID pandemic, millions of Americans were handed generous unemployment benefits, often higher than the salaries they were earning, as well as thousands in stimulus checks.
Rent and student loan holidays enforced to stop people from being made homeless further bolstered finances, as did the fact that so many entertainment and travel options were shuttered.
The chart shows the National Personal Savings rate for each month over the last decade.
Prior to May, the lowest figure recorded was in January 2013, when Americans had 5.6 percent of a leftover paycheck to save
Biden told the largest federation of labor unions that he's working to rebuild the U.S. economy around workers and claimed that families have less debt and more savings than when he took office.
According to the Wall Street Journal, JPMorgan Chief Executive Jamie Dimon said in June that U.S. consumers still had between six and nine months of spending power remaining in their bank accounts.
Americans' bank account balances increased after they received stimulus payments and balances remain above where they were in 2019, according to Chris Wheat, co-president of the JPMorgan Chase Institute, as reported by the Wall Street Journal.