The US personal savings rate fell to 2.6% in April, the lowest level since 2022, as inflation continues to outpace wage growth, according to a report.
This marks a significant drop in the portion of income Americans are setting aside after taxes and expenses, signaling increasing financial strain on households.
375% since its April 2026 meeting, as outlined in the FOMC statement.
The Federal Reserve has maintained its federal funds rate target at 4.375% since its April 2026 meeting, as outlined in the FOMC statement.
This decision, made in a 6-3 split vote, underscores the central bank's cautious approach to inflation control while balancing economic growth.
The decline in savings comes amid broader macroeconomic uncertainty.
With the personal consumption expenditures (PCE) price index showing persistent inflationary pressures, households are finding it increasingly difficult to allocate funds for savings.