, Columnist
The Forgotten $1 Trillion Supporting the Economy
The key provisions of the CARES Act have mostly expired, but they have given a big boost to consumer savings.
Many Americans have cash to spend.
Photographer: Bloomberg
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There is $1 trillion stashed away in the U.S., and it just might save the economy. It’s enough to either boost consumer spending by at least $78 billion dollars a month over the next year or supercharge growth if confidence soon turns higher.
What is this cash hoard and where did it come from? Quite simply, it’s the remnants of the $2.2 trillion CARES Act passed by Congress in March. The hallmarks of that program included $1,200 payments for adults making up to $75,000 and $500 for their children, as well an extra $600 in weekly unemployment benefits.1