Section 1 Short title
This Act may be cited as the “Protecting Americans’ Savings Act of 2022” .
Protecting Americans’ Savings Act of 2022
A BILL
To require the Secretary of the Treasury to conduct a study on the effects of inflation on the savings of individuals in the United States, and for other purposes.
Sec. 2 Findings
Congress finds the following:
High inflation erodes the earnings and savings of hard-working individuals across the United States.
The Consumer Price Index rose 7.5 percent from January 2021 to January 2022, which is the largest increase in a 12-month period in over 30 years.
The current environment, where high inflation is paired with low interest rates, pushes real savings yields deep into negative territory.
While the yield of a 1-year Treasury bill in January 2022 was 0.5 percent, the real yield of the bill was negative 7 percent.
Negative savings returns adversely affect all who save, especially retirees and those who rely on savings to build wealth or to prepare for large expenses, such as college tuition or a down payment on a home.
Sec. 3 Study on impact of inflation on savings
Study— The Secretary of the Treasury shall conduct a study to—
examine the effects of inflation on the real value of savings and the incentive to save for individuals in the United States, including an analysis of—
whether low or negative real returns affect savings rates;
how negative real interest rates affect individuals living on fixed incomes, such as retirees;
how negative real interest rates affect economic mobility;
the aggregate loss of purchasing power of savings that is attributed to inflation with respect to common savings tools, including Treasury bonds, bills, and notes, interest on savings accounts, money market accounts and funds, and certificates of deposit; and
how inflation will affect savings returns over the next 5 years; and
assess the feasibility and impact of raising the current limit, per individual, on purchases of inflation-protected Series I bonds issued by the Department of the Treasury.
Report— Not later than 30 days after the date of enactment of this Act, the Secretary shall submit to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate a report on the results of the study required under subsection (a).