Savings of American baby boomers will save the economy from recession

The retirement of representatives of the baby boomer generation in the United States (post-war children. – Vedomosti) will save the American economy from recession. This was stated by the president of the consulting agency Yardeni Research and veteran of the financial market, Ed Yardeni. His column is published on the company’s website. “Pandemic savings” (at the beginning of 2020, the Federal Reserve System (Fed) in connection with “helicopter payments” recorded a sharp increase in the savings of Americans, which amounted to 26.4% y / y in the II quarter) of the population is ending and this could drown the American economy, he thinks. Yardeni estimated the consumer demand gap at $75 trillion. When the baby boomers retire, the market will have access to their savings, which are estimated to be worth more than $70 trillion. Now the funds are partially withdrawn from the economy – they are managed by pension funds, invested in real estate, etc. It is assumed that after retirement, Americans will print out savings.

A surge of this volume will significantly reduce the risks of a recession in the United States until at least 2029, Yardeni believes. For comparison: the entire world GDP for 2022 is estimated at $101 trillion.