Consumer spending has surpassed trillion in the current year, a 20% increase compared to last year and Americans still have excess cash at hand.
- Moynihan, Bank of America reported American consumers have excess cash in their checking accounts. Most consumers have not spent more than 65% to 70% of their stimulus money.
- The US government stimulus package to low-and middle-income people and households has reduced material hardship.
- The excess stimulus money at the banks will boost the continued resurgence of the U.S. economy. Bank of American projects a 7% growth in the U.S. economy in 2021 and 5.5%, next year.
Weak supply chains and shortage of workers are major risks, which might affect the recovery of the U.S. economy.
DJI dips -0.25% on the news.
Source: CNN Business.