The Daily Money

ALL THE MONEY NEWS YOU NEED TO KNOW

Tue Oct 17 2023

Swapna Venugopal Ramaswamy | National Housing and Economy Correspondent

@SwapnaVenugopal

Happy Tuesday, TDM readers! This is Swapna Venugopal Ramaswamy bringing you today's headlines.

Americans socked away substantial amounts of money during the pandemic. But now that reserve is running dry.

The pandemic-related savings and government aid that have helped prop up the U.S. econom y over the past three years are dwindling, posing new strains for low- and moderate-income households and hazards for a nation at risk of slipping into recession by early 2024.

Concerns about inflation have increased in recent months, as stimulus payments begin to dry up.

PeopleImages / Getty Images

In interviews and a Harris Poll survey for USA TODAY, Americans whose COVID cash reserves are running low say they're putting off home projects, eating out less, canceling subscriptions and taking out loans to make ends meet.

And that's bad news when it comes to U.S. consumer spending, which makes up 70% of economic activity.

Overall, the shrinking trove – along with rising credit card interest rates, high inflation and a cooling job market -- could tip the nation into a recession by next year, some forecasters say.

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Each weekday, The Daily Money delivers the best consumer news from USA TODAY. We break down financial news and provide the TLDR version: how decisions by the Federal Reserve, government and companies impact you.