FRED: Personal Savings Rate Plummets As People Are Struggling - Thanks Trump!

[citygator]

Looks like the Trump economy is creating “cash strapped” Americans. Treasury Secretary Kevin Hassidiot was just bragging about how great the economy was based on consumers spending on credit. Now we learn the savings rate has plummeted to barely anything - 2.6% of earnings. That’s less than half of what Biden passed on.

One Worrying Stat Shows How Americans Are Squeezed by Trump’s Economy

Americans are being stretched thin and putting less than half as much toward savings.

www.thedailybeast.com

Americans are putting less than half as much toward their savings as they were a year ago, as they face soaring inflation and incomes that are not keeping up with rising costs.

The latest government data released on Thursday showed the personal saving rate was 2.6 percent in April. That’s dramatically down from the 5.5 percent of disposable income being put away one year ago in April 2025.

At the same time, personal incomes fell in April as consumers have been feeling the squeeze.
It comes as consumer sentiment has hit an all-time low with Americans struggling with the cost of living, including skyrocketing energy prices due to the war in Iran, with no clear end in sight.

 

[citygator]

Fred link if you want it: Personal Saving Rate

 

[Winston]

Looks like the Trump economy is creating “cash strapped” Americans. Treasury Secretary Kevin Hassidiot was just bragging about how great the economy was based on consumers spending on credit. Now we learn the savings rate has plummeted to barely anything - 2.6% of earnings. That’s less than half of what Biden passed on.

One Worrying Stat Shows How Americans Are Squeezed by Trump’s Economy

Americans are being stretched thin and putting less than half as much toward savings.

www.thedailybeast.com

Americans are putting less than half as much toward their savings as they were a year ago, as they face soaring inflation and incomes that are not keeping up with rising costs.

The latest government data released on Thursday showed the personal saving rate was 2.6 percent in April. That’s dramatically down from the 5.5 percent of disposable income being put away one year ago in April 2025.

At the same time, personal incomes fell in April as consumers have been feeling the squeeze.
It comes as consumer sentiment has hit an all-time low with Americans struggling with the cost of living, including skyrocketing energy prices due to the war in Iran, with no clear end in sight.

I am not a car guy, but the economy is really like a car. And right now, well it is like that Datsun 210 I drove to Chapel Hill almost every weekend. Damn shaking and groaning as I pushed it to 90 mph. That is where the consumer is at. I mean they are making real choices, real sacrifices, running 90mph in an unmaintained car, past due an oil change, and the thermostat out on the radiator. In other words, a damn wreck waiting to happen.

 

[Winco]

Looks like the Trump economy is creating “cash strapped” Americans.

I read a financial article yesterday, and the author claimed that 40% of Americans making over $500,000 per year say they live paycheck to paycheck.


Dear Lord, what kind of spending do these ^^^^^^ people do?

 

[initforme]

If one is middle or lower class one simy isn't goung to get very far ahead no matter how hard they work. Been that way a long time.

 

[CrusaderFrank]

Looks like the Trump economy is creating “cash strapped” Americans. Treasury Secretary Kevin Hassidiot was just bragging about how great the economy was based on consumers spending on credit. Now we learn the savings rate has plummeted to barely anything - 2.6% of earnings. That’s less than half of what Biden passed on.

One Worrying Stat Shows How Americans Are Squeezed by Trump’s Economy

Americans are being stretched thin and putting less than half as much toward savings.

www.thedailybeast.com

Americans are putting less than half as much toward their savings as they were a year ago, as they face soaring inflation and incomes that are not keeping up with rising costs.

The latest government data released on Thursday showed the personal saving rate was 2.6 percent in April. That’s dramatically down from the 5.5 percent of disposable income being put away one year ago in April 2025.

At the same time, personal incomes fell in April as consumers have been feeling the squeeze.
It comes as consumer sentiment has hit an all-time low with Americans struggling with the cost of living, including skyrocketing energy prices due to the war in Iran, with no clear end in sight.

At least he’s on the record about not caring about the people he’s supposed to lead

 

[toobfreak]

Looks like the Trump economy is creating “cash strapped” Americans.

Damned Trump. Thanks Trump. The Rat Bastard. And here we were all making money hand over fist under Joe Biden, too.

 

[Mac1958]

The "K" in the "K-shaped economy" is quickly getting bigger.

It sure doesn't help when Americans watch Trump enriching himself and his pals with grift, frontrunning and favors.

But his useful idiots think that we HE wins, THEY win.

 

[LordBrownTrout]

Best economy evahhhhhhhhhhhhhhhhhhhh!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Hey, but don't fear, the nephilim are about to appear and billions will bow while they fix everything................for a bit.................

 

[my2¢]

Hopefully these downward trends with the economy will amount to nothing but an afterthought, especially more likely if the Middle East folly ends soon.

 

[CrusaderFrank]

I read a financial article yesterday, and the author claimed that 40% of Americans making over $500,000 per year say they live paycheck to paycheck.


Dear Lord, what kind of spending do these ^^^^^^ people do?

Hookers and blow, well was like that in the 70’s anyway

 

[Winston]

I read a financial article yesterday, and the author claimed that 40% of Americans making over $500,000 per year say they live paycheck to paycheck.


Dear Lord, what kind of spending do these ^^^^^^ people do?

Stupid spending. First, the damn cars. Probably a quarter million in the damn garage. And all with loans behind them. Then there is the house. A McMansion, and another big fat loan. I mean what these people spend in interest per month would scare the beJesus out of you. Then there is private school tuition, twenty grand if half way worth a shit.

I am really proud of my kids. First lesson, buy a house. A sturdy house, be the smart pig. They did, and early, really early. Second lesson, don't pay damn taxes. Throw everything you can into untaxed assets, 401K, HSA, and maximize contributions to the Roth. Third lesson, invest in equities, know the markets, my middle son is so funny. Someone asked him his investment strategy, he replies, "I just do what my older brother tells me to do".

The thing is, our economy is becoming unstable. Something like 80% of the spending is coming from 20% of the population. Hell, at this point, we have already lit the kindling.