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Capitol Report: Why the savings rate falling to a 12-year low is not a death knell for the U.S. economy

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Americans are apparently not saving all their pennies for a rainy day. The U.S. savings rate fell to a 12-year low in 2017, at least by one government measure.

Uh-oh: Americans have slashed their savings to a 12-year low, leaving them with smaller rainy-day funds to weather another economic tempest.

Or have they?

By at least one government measure, savings do appear to have plummeted. The monthly report on personal spending, produced by the Bureau of Economic Analysis, shows the U.S. savings rate fell to 2.4% in December. That’s the lowest level since 2005.

Just two years ago, the savings rate was more than twice as high.

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