Excess Savings During the COVID-19 Pandemic

Posted: 26 Oct 2022

See all articles by Aditya Aladangady

Aditya Aladangady

Board of Governors of the Federal Reserve System

David Cho

Government of the United States of America - Division of Research and Statistics

Laura Feiveson

Board of Governors of the Federal Reserve System

Eugenio Pinto

Board of Governors of the Federal Reserve System

Date Written: October 1, 2022

Abstract

Over the pandemic, historic levels of government transfers boosted household income while household spending was severely curtailed by social distancing. This led the personal saving rate to soar (Figure 1), and we estimate that U.S. households accumulated about $2.3 trillion in savings in 2020 and through the summer of 2021, above and beyond what they would have saved if income and spending components had grown at recent, pre-pandemic trends.

Suggested Citation

Aladangady, Aditya and Cho, David and Feiveson, Laura and Pinto, Eugenio, Excess Savings During the COVID-19 Pandemic (October 1, 2022). FEDS Notes No. 2022-10-21, Available at SSRN: https://ssrn.com/abstract=4258570 or http://dx.doi.org/10.17016/2380-7172.3223

Aditya Aladangady (Contact Author)

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

David Cho

Government of the United States of America - Division of Research and Statistics ( email )

20th and C Streets, NW
Washington, DC 20551
United States

HOME PAGE: http://https://www.federalreserve.gov/econres/david-cho.htm

Laura Feiveson

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

Eugenio Pinto

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

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