Recession-Shocked Savers Rein In Rates With a $20 Trillion Hoard
- ‘Savings shock,’ not just Fed, creates bond-buying binge
- Personal savings rate expected to remain elevated after virus
This article is for subscribers only.
The economic shock from the coronavirus caused companies, consumers and investors to hoard cash like almost never before.
Many experts expect that urge to save to stick around for the long haul. And that should create strong demand for the safest fixed-income products, a force that could lend a hand to the Federal Reserve when it comes to suppressing yields as the government ramps up its supply of bonds to pay for economic stimulus measures.