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Welcome to the FIA News & Insights, a one-stop resource that includes insights from senior investment professionals on timely market events, their views on the economy and their respective markets.  Find updates on the latest media information on Frost Investment Advisors, LLC and the most recent reprints, as well as, archival information for your reference.


Excess Savings Go Poof!

The Frost Feed: Market Intelligence | Commentary from Frost Investment Advisors  | September 04 , 2023

Helicopter Money Crashes, Labor Market Cooling, Stealth Edits of Economic Data Continue, and Russia’s Economy Fades

The strength of the U.S. economy has been surprising this year, creating a mountain of excess savings on household balance sheets. The resilience is due to buoyant consumer demand, fueled by gargantuan pandemic-era stimulus from the federal government, and an absence of routine expenditures during the lockdowns. When households finally deplete their surplus savings, this will remove what has been a durable tailwind for consumption and economic growth over the past two years. Couple this spenddown with the resumption of student loan interest accruing in September and payments restarting in October, and it seems obvious that consumers will be forced to become stingier.

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