FED HAWKISHNESS PEAKS AS RISING DEBT PAYMENTS CUT INTO SAVINGS

A tightening Federal Reserve policy is raising the burden on household interest rates, leading to a sharp decline in excess savings. The pandemic marked rapid growth in excess savings and drove household wealth significantly higher. The personal savings rate has collapsed to an all-time low of 3.1%, having reached 33% during the pandemic. Excess savings are being run down by increased inflation and interest rates.