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Is the slump in the saving rate a danger?

The decline in the household saving rate, to a near-decade low of 3.1% in September, is largely explained by the accompanying surge in household net wealth to a record high. Capital gains mean that households can get away with saving less from current income. Households might also be running down their saving rate in anticipation of a reduction in taxes, which would boost disposable income, by early next year.

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