Fed researchers say excess savings have been depleted. That might actually signal something very bullish 🤯

Can spending activity hold up without the support of excess savings? 🤔

For almost two years, TKer has been arguing that excess savings — the extra cash that consumers piled up since February 2020, thanks to a combination of government financial support and limited spending options during the pandemic — were acting as a massive tailwind to the economy.

In particular, they helped explain why consumer spending growth has persisted despite weak sentiment.

But there have been two key points of contention regarding excess savings.