![]() ![]() In our sample, cash balances in the first two months of 2020 had grown by roughly 7 percent on a year-over-year basis previous Institute research showed an annual growth rate of 11 percent over a three year period for liquid assets. Second, the charts below do not account for the secular upward trend of liquid balances prior to the pandemic. 3 In this sense, the growth we observe in nominal balances may not fully track growth in consumer spending power. This is especially noteworthy given the high rate of inflation in the economy: consumer prices rose by 9.1 percent for the year ending June 2022, the fastest pace in four decades. First, our balance growth numbers are based on nominal dollars. To put our measures of family checking account balances into perspective with other household finance metrics, there are three important considerations to keep in mind. ![]() Updated income quartiles incorporate three full calendar years of families’ incomes, and additions to our income findings provide further detail on balance distributions by income (see the Data Box below, as well as Finding One). 2 We compare cash balance trends across income and age distributions and between families who did and did not receive advanced CTC payments. This release examines the path of household cash balances through the end of June 2022, giving us a look at liquid asset trends during the COVID-19 pandemic and associated government financial supports, through the months of advanced Child Tax Credit (CTC) payments and following their expiration. Based on recent JPMorgan Chase Institute research, our Household Finances Pulse leverages de-identified administrative banking data to analyze changes in cash balances during the COVID-19 pandemic and ongoing recovery. The COVID-19 pandemic resulted in an unprecedented recession that impacted families’ financial positions.
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