CEOs warn that US households are burning through savings at an alarming rate, and could run out within months

• Since March 2020, US households have gained over $2 trillion in savings.

• Consumer spending has been helped by the extra cash.

• CEOs warn that the savings could run out in a matter of months.

Consumers have helped the US economy beat expectations for the past two years.

The spending was powered by excess savings that households accumulated due to federal aid and higher wages.

Inflation is the increase in the price of goods and services.

Americans are finding that their monthly income is not going as far as it used to.

The personal savings rate in the US fell to a 14-year low in April.

It was half of what it was in December and a third of what it was a year ago.

Many households are already in negative savings territory and are increasingly using their savings to cover purchases.

Jamie Dimon said at a conference this week that fiscal stimulation is still in the pocketbooks of consumers. They're spending a lot of money.

Consumers may only have about six to nine months of spending power left, he said.

Dan Schulman made similar comments at the World Economic Forum.

Americans are burning through savings at a rate that could cause them to run out of money by the end of the year, he said.

It is already happening in vulnerable households.

"We are already seeing a reduction in spending at lower-income levels, and it is moving up to middle-income right now."

According to a recent survey from the market research firm, more than eight in ten US shoppers are planning to cut back on purchases in the next three to six months. Consumers bought fewer items in the first three months of the year than they did in the year before that, according to a survey.

There is a tug-of-war between the consumer's desire to buy what they want and the need to make concessions based on the higher prices hitting their wallet.

Big box brands like Target and Walmart are already seeing their earnings dragged down by the retail downturn.

The Commerce data shows that Americans are still spending a lot of money, and airlines and hotels are reporting strong bookings.

The next few months will be a balancing act to get prices under control without causing them to crash.

"There's storm clouds, it's a Hurricane," said the CEO. We are going to get hit by that storm down the road. We don't know if it's a small storm or a big storm.

Business Insider has an article on it.