Americans credit card spending up 20% and yet bank account still as full as ever, according to Bank of America

CNBC has a paywall article on statements from Bank of America CEO:

  • spending on Bank of America cards has jumped up to 20% from last year.
  • While there was concern that consumer bank account balances would plunge after government stimulus programs ended, that hasn’t been the case yet, Moynihan said. Instead, balances have risen for the “last six or seven months,” according to the CEO.

What I don't understand is how is this possible. People are spending more than before. Government subsidies have decreased. And yet consumer bank accounts have actually gone up in the last six or seven months.

Also, if this trend continues — people continue to increase spending — doesn't that mean the Fed will have a near-impossible job to slow down inflation?

At what point will people finally stop spending so much?


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