Americans aren't rebuilding their savings fast enough | CNN Business

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A recession could be miles away — or it could be just around the corner

If that “someday” were today, how would the average American hold up financially? Fairly well, but at the expense of their nest eggs, according to a new analysis from the JPMorgan Chase Institute. “We see families building savings back up more slowly than they spend them down, so if many families lose savings in a recession, it could take a while for them to recover,” said Chris Wheat, president of the JPMorgan Chase Institute, a think tank within the country’s largest bank.

That’s left them with dwindling cash buffers, he told CNN. In his research, Wheat defines a cash buffer as the amount of time someone could keep up their regular spending without any income or access to new credit. In June 2021, the top-income quartile of Chase customers had a median cash buffer of 43 days, while the lowest-income quartile had a median cash buffer of 22 days.

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