Banks Say the Consumer Is Strong: What Does That Mean for Inflation?
Recent data from Bank of America (NYSE: BAC) and Citigroup (NYSE: C) show that consumer spending remains strong. Not only that, but consumers are saving money and still have account balances much higher than pre-pandemic levels.
Consumers have higher deposit balances, which could lead to "stickier" inflation or higher inflation for a while longer. Here's what you should know about the state of the consumer and what areas of the economy are being affected.
Consumer deposit growth has been staggering. During the pandemic, enormous fiscal and monetary stimulus resulted in growing consumer account deposits. This deposit growth has given consumers a stronger balance sheet and more savings to absorb rising costs.
Source Fool.com
