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US cash could cushion a slowdown

Inflation is high, the Federal Reserve is raising rates, the housing market is faltering, and major retailers like walmart sent warning signals. Yet despite all the worrying signs about the direction the economy is headed, many Americans have something they typically lack when a recession approaches: lots of cash.

Multiple rounds of government relief and a sharp reduction in spending on services such as travel have significantly inflated US household savings during the pandemic, and most of that money is still there.