US consumer savings boost economy — Fed

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US consumer savings boost economy — Fed
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WASHINGTON, United States— The US economy saw “modest” growth over the summer as consumers kept the wheels turning by dipping

The US economy has shown signs of resiliency in recent months despite an aggressive campaign of interest rate hikes by the Fed to tackle high inflation.

In its regular report on economic conditions known as the “beige book,” the Fed indicated that positive economic news could soon come to an end, along with consumer savings accumulated during the pandemic. Spending on tourism helped balance out a slowdown in other non-essential retail spending, as some Fed districts suggested that “consumers may have exhausted their savings and are relying more on borrowing.”

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