The Daily Money: Americans have used up most of the stimulus money. Will a recession follow?

Americans whose COVID cash reserves are running low say they're putting off home projects, eating out less and taking out loans to make ends meet.

Advertisement Read in browser Read in browser The Daily Money ALL THE MONEY NEWS YOU NEED TO KNOW Tue Oct 17 2023 Swapna Venugopal Ramaswamy | National Housing and Economy Correspondent @SwapnaVenugopal Happy Tuesday, TDM readers! This is Swapna Venugopal Ramaswamy bringing you today's headlines. Americans socked away substantial amounts of money during the pandemic. But now that reserve is running dry. The pandemic-related savings and government aid that have helped prop up the U.S. econom y over the past three years are dwindling, posing new strains for low- and moderate-income households and hazards for a nation at risk of slipping into recession by early 2024. Concerns about inflation have increased in recent months, as stimulus payments begin to dry up. PeopleImages / Getty Images In interviews and a Harris Poll survey for USA TODAY, Americans whose COVID cash reserves are running low say they're putting off home projects, eating out less, canceling subscriptions and taking out loans to make ends meet. And that's bad news when it comes to U.S. consumer spending, which makes up 70% of economic activity. Overall, the shrinking trove – along with rising credit card interest rates, high inflation and a cooling job market -- could tip the nation into a recession by next year, some forecasters say. 📰 More stories you shouldn't miss 📰 Despite Biden administration 'junk' fee crackdown, ATM fees are higher than ever Put another nickel in: How Cincinnati helped make jukeboxes cool Citibank employee fired after lying about having 2 coffees, sandwiches, and pastas alone Each weekday, The Daily Money delivers the best consumer news from USA TODAY. We break down financial news and provide the TLDR version: how decisions by the Federal Reserve, government and companies impact you. TDM: How much less are Americans willing to make to work remotely? Remote workers spend about $6,000 less per year than office-bound employees, according to FlexJobs. READ MORE Advertisement The newest Toyota Tacoma is a truck full of force. Our take. Toyota fans will line up for the 2024 Toyota Tacoma, the fourth generation of the popular truck, which is chock full of power and new design. READ MORE IRS grants tax relief to those impacted by Israel-Hamas conflict IRS issued special tax relief to individuals and businesses in Israel, the West Bank or Gaza. READ MORE What to do now if you're planning to retire in the next few years What you do over the next couple of years can have a lasting impact on your retirement. READ MORE Ford and Mercedes-Benz among nearly 250,000 vehicles recalled: Check here Among vehicles recalled recently: More than 235,000 Ford Explorer SUVs, more than 5,300 Mercedes-Benz roadsters, plus Harley-Davidson motorcycles. READ MORE New real estate platform can help buyers get pandemic-rea mortgage rates Mortgage assumption allows the seller of a home to pass along to the buyer an existing home loan, negotiated earlier at low interest rates. READ MORE How UAW autoworker hourly pay compares to other hourly jobs across US UAW workers are striking for better pay, among other benefits. Here's a look at how UAW hourly wages compare with other workers in striking states. READ MORE Rite Aid files for Chapter 11 bankruptcy amid opioid lawsuits, slow sales Rite Aid filed for bankruptcy Sunday and plans to close an untold number of stores across the United States amid slumping sales and opioid lawsuits. READ MORE Sorry kids. Grown-up Disney trips may be the best kind of adulting. Kids of all ages are welcome at Disney World and Disneyland, but here's why adults may want to take a child-free trip. READ MORE It's about to get easier to join Southwest Airlines' A-List The changes should make getting elite status on Southwest Airlines easier. READ MORE Advertisement Sign up for the news you want Exclusive newsletters are part of your subscription, don't miss out! We're always working to add benefits for subscribers like you. SEE ALL NEWSLETTERS ➔ SEE ALL NEWSLETTERS ➔ Newsletters   |    eNewspaper   |   Crosswords Follow Us Problem viewing email? View in browser Unsubscribe  •  Manage Newsletters  •  Terms of Service  •  Privacy Policy/Your California Privacy Rights  •   Privacy Notice  •  Do Not Sell My Info/Cookie Policy  •  Feedback