Muted Money

The US savings rate jumped from 13.4% of disposable income in December to 20.5% in January. This means only 20 cents/dollar the government provided in the $600 stimulus checks was spent. This suggest most of the next round of stimi money will probably also be saved, making one question the wisdom of sending out another $1,400/person. But, it also means inflationary pressures are likely to be somewhat lessened.