Americans More Likely Than Usual to Spend Extra Income
(Bloomberg) -- As lawmakers negotiate over more coronavirus relief, U.S. households say they’re more likely to spend extra income than usual.
Respondents to a Federal Reserve Bank of New York survey in December said they would spend or donate 19.3% of an unexpected increase in income on average, up from 17.1% in December 2019, before the pandemic began.
Some 44.5% of the extra money would go toward savings or investments, while 36.3% would be used to pay down debts, according to the results of the survey published Monday by the Federal Reserve Bank of New York.
President Joe Biden is pressing Congress to pass an additional $1.9 trillion package of coronavirus relief measures, including direct payments of $1,400 to many Americans and enhanced benefits for the unemployed. That would follow the $900 billion of aid lawmakers authorized in December, which included direct payments of $600.
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