Most Americans continue to park the last rounds of economic stimulus they received in banks.
- Bank of America Chief Executive Officer Brian Moynihan said most clients of the bank have not yet spent about 65% to 70% of the most recent stimulus paychecks.
- The United States released $804 billion to individuals and families classified as low and middle income categories.
- Consumers are starting to spend on leisure activities such as hotel accommodations, restaurants, and car rentals.
- Consumer spending has breached $1 trillion so far this year. This is 20% higher than the comparative period in 2019.
- The sudden growth of consumer spending could drive inflation if demand would surpass what the economy can provide.
- Moynahan likewise flagged key risks such as issues on supply chains and worker shortages.
- The Bank of America expects the U.S. economy to expand 7% in 2021 and 5.5% next year.