Americans are tapping into substantial savings they've accumulated over the course of the pandemic, amid soaring inflation that's sending the costs of food, housing and other necessities way up.
During the start of the COVID-19 pandemic, Americans' cash cushions grew as they hunkered down, sheltered in place and stopped spending money on dining out, travel and more. They also benefitted from three rounds of stimulus checks, extra unemployment aid and Child Tax Credit payments.
High-income families socked away money by not traveling, eating at restaurants and otherwise spending like they normally would due to pandemic restrictions. Low- and middle-income families benefited from robust government support, including enhanced unemployment benefits, stimulus checks as well as food and housing assistance.
"They haven't begun to draw down their savings because of very strong wage growth for low-wage workers," Zandi said."They've been getting wage increases that are larger than the increases in inflation."
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