This higher saving rate should prove reasonably durable as households seek to pay down debt and rebuild wealth, and no longer count on house price appreciation as a substitute for saving out of current income.
In contrast, the pickup in business investment as the economic recovery strengthens could well outpace any increase in business profits and saving, and part of the narrowing in the current account deficit could be reversed, absent other developments. One of the steps to achieve rebalancing must be placing U.S. fiscal policy on a more sustainable path.