Protecting Americans’ Savings Act of 2022
Bill: H.R.7005 | Sponsor: Rep. Mooney, Alexander X. (R-WV)
Policy area: Finance and Financial Sector

Summary:
Protecting Americans' Savings Act of 2022
This bill directs the Department of the Treasury to report on the effects of inflation on the value of individuals' savings and the feasibility of raising the current individual limit on inflation-protected Treasury Series I Savings bonds. (Currently, there is an annual purchase limit of $10,000 for electronic bonds and $5,000 for paper bonds.)

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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Protecting Americans' Savings Act of 
2022''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) High inflation erodes the earnings and savings of hard-
        working individuals across the United States.
            (2) 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.
            (3) The current environment, where high inflation is paired 
        with low interest rates, pushes real savings yields deep into 
        negative territory.
            (4) 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.
            (5) 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.

    (a) Study.--The Secretary of the Treasury shall conduct a study 
to--
            (1) 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--
                    (A) whether low or negative real returns affect 
                savings rates;
                    (B) how negative real interest rates affect 
                individuals living on fixed incomes, such as retirees;
                    (C) how negative real interest rates affect 
                economic mobility;
                    (D) 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
                    (E) how inflation will affect savings returns over 
                the next 5 years; and
            (2) 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.
    (b) 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).
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