Federal Reserve Bank of Boston | bostonfed.org |
Bank Administration, 7 January 2020
Underlying strength in household spending:
Wealth and savings
▶ Typically, high
wealth-to-income ratio
implies less need for
saving
▶ Recently, saving rate has
been high (8%), and W/Y
has been near all-time
highs
▶ Might suggest some
upside risk to consumer
spending
▶ As long as other things
don't fall apart
Sources: Bureau of Economic Analysis (savings rate, income), Flow of Funds (net worth), Haver analytics.
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