US citizens are unready for rainy days, research finds

Spending has increased from pre-pandemic trend level, Minneapolis Fed paper says

Minneapolis Fed at night
The Minneapolis Fed at night
Michael Hicks

Many Americans are unready to experience a break in income despite recent economic growth, a researcher with the Federal Reserve Bank of Minneapolis finds.

In the paper, Jeff Horwich uses data from the Federal Reserve’s survey of household economics and decision-making. It shows 54% of adults in the US hold enough savings to cover three months of living expenses should they lose their primary source of income.

The data was gathered in October 2023 and showed a decline in savings from a year prior

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