During the pandemic, Americans saved approximately $2.1 trillion, providing a cushion that sustained consumer spending and kept the economy strong despite rising interest rates and inflation. However, recent estimates show that excess pandemic savings in the US economy have turned negative, indicating that many Americans now have more debt than savings. This suggests that American households fully spent their pandemic-era savings as of March 2024, leading to concerns about the future of consumer spending and the economy. Chicago Federal Reserve President Austan Goolsbee expressed worry about increasing consumer debt levels and delinquencies, which could be indicators of further economic trouble.
The recent slow growth of real GDP, well below economist forecasts, is causing some analysts to lower their expectations for economic growth this year. Retailers are also feeling the effects of decreased consumer spending, as shoppers have been pulling back due to rising costs and stagnant incomes. Companies such as Tyson Foods, Starbucks, and McDonald’s have reported declines in sales and reduced forecasts due to consumer reluctance to spend. The excess savings households accumulated during the pandemic played a role in bolstering the economy, but other factors, such as a strong labor market, also contributed to robust spending levels.
Warren Buffett expressed concerns about the potential dangers of artificial intelligence at Berkshire Hathaway’s annual shareholder meeting. He warned about the potential consequences of AI technology, mentioning the risks of deep fakes and scams. While acknowledging that AI could have positive impacts, Buffett emphasized the need to carefully consider its potential for harm. Amidst the AI boom that has transformed various industries, Berkshire Hathaway has started using AI to increase efficiency among employees, but Buffett remains cautious about its implications.
Investigators are currently looking into whether Boeing employees failed to conduct quality inspections on its 787 jets and potentially falsified aircraft records. Boeing informed the FAA in April that it may not have completed required inspections on certain 787 Dreamliner airplanes, prompting a voluntary investigation. The company is taking corrective action to address the issue of employees not performing required tests but recording the work as completed. While the situation is not an immediate safety concern, it highlights the importance of thorough quality inspections and compliance with company policies.
