21 August 2023
US consumers face a looming crisis as pandemic savings dry up, risking a potential recession. Over two years, they’ve spent the $2 trillion surplus from the pandemic, struggling with soaring inflation and rapid Federal Reserve interest hikes. With dwindling reserves, many now rely solely on their wages, especially the lower-income groups, leaving them vulnerable and pondering increased debt. Experts fear the upcoming resumption of student loan payments and limited credit access could force consumers to cut back spending, plunging the economy into decline.