Latest / The Macro Memo with Fexingo: Daily Conversations on Inflation, GDP, and Federal Reserve Policy
Why Americans Are Saving Less Despite Higher Incomes
The U.S. personal saving rate dropped to 3.2% in April 2026, even as disposable income rose 0.4%. Lucas and Luna drill into the paradox: why households are spending more of each paycheck despite a strong job market. They examine the 'double scar' from the 2021-2023 inflation shock and the war-driven energy cost jump of $450 per household, plus the rise of buy now, pay later as a structural shift in how Americans save. Drawing on Boston Fed research on spending inertia and fresh JOLTS data showing job openings falling to 6.9 million, they connect the saving rate collapse to sticky…
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