5 In particular, savings among low-income households appear to be lower and to have declined more rapidly than was previously appreciated. 6 The widespread expectation for U.S. growth to be below potential over 2022 and 2023 reflects significant tightening in both fiscal and monetary policy in an environment of broader global tightening.
The expiration of previous fiscal stimulus imposed a substantial drag on real U.S. gross domestic product (GDP) growth in 2022, whereas fiscal policy is expected to make a modest contribution over the next few years, in line with its longer-run average.