Americans’ savings dwindled to their lowest point in almost a decade in February, according to the latest government data.
The US savings rate—how much money Americans were putting away after paying their bills—was 6.3% of their income in February. That’s slightly up from 6.1% in January, but still much lower than 2019’s annual 7.6% rate or 2020’s unusually high 16.3%.
Despite economic turmoil from the pandemic, savings had grown in the past two years because of federal stimulus checks and extended unemployment insurance. But that’s fading away as government stimulus recedes. Meanwhile, the labor market recovery is still short of the pre-pandemic levels. The drop in savings has been especially sharp for poor Americans.
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