Congress on Dec. 21 passed a $2.3 trillion year-end spending bill, including $1.4 trillion to fund the federal government through September 2021 and a $900 billion rescue package to provide direct fiscal aid to households and businesses equal to 4.25% of GDP. This represents the second-largest economic aid measure in … … READ MORE >
CHART OF THE DAY: Coronavirus patients overwhelm hospitals and their workers
The resurgence of the coronavirus not only threatens to overwhelm hospitals and the number of beds they have to treat patients, but it also puts enormous strain on the workers themselves and their ability to manage cases. … READ MORE >
CHART OF THE DAY: The vanishing worker
The domestic labor market is approaching a potential inflection point for millions of workers. The number of people unemployed for more than 26 weeks is rising, and they have about a 10% probability of finding work at wages similar to what they earned before their extended unemployment. … READ MORE >
Initial jobless claims increase to 885,000, a three-month high
Initial claims for unemployment insurance rose to 885,000 for the week ending Dec. 12, an increase from an upwardly revised 862,000 as claims moved above the 13-week moving average. … READ MORE >
FOMC rate decision: Policy on hold as Fed extends asset purchases
The Federal Reserve on Wednesday extended its $120 billion monthly asset purchases through September 2021 to provide sustained accommodation to the economy as it recovers from a deep pandemic-induced recession. … READ MORE >
Coronavirus update: Vaccination begins
The mass distribution of a coronavirus vaccine, which we expect to occur by mid-2021, will bolster economic activity in the second half of next year and set the stage for economic recovery and expansion over the next 12 to 24 months. … READ MORE >
FOMC preview: Extending guidance as second wave of pandemic peaks
The Federal Open Market Committee this week will almost certainly provide insight into its monetary policy path by extending the weighted average maturity of its Treasury purchases while simultaneously keeping the policy rate effectively at zero. … READ MORE >
Damp wage growth is a Beveridge served cold
The long-term economic scarring of the pandemic — mostly among small businesses in leisure and hospitality, food and beverage, and retail — will dampen wage growth over the next few years. One way to see this dynamic is with the Beveridge curve, which illustrates a downward-sloping relationship between a higher … … READ MORE >
Jobless claims: Pace of firings increases to 853,000, pointing to urgent need for fiscal aid
As policymakers continue to negotiate over another round of fiscal aid, initial claims for unemployment insurance increased to 853,000 for the week ending Dec. 5. … READ MORE >
CHART OF THE DAY: U.S. job openings improve
Workers are growing more confident in their ability to find a job, according to the most recent Job Openings and Labor Turnover Survey, or JOLTS, from the Bureau of Labor Statistics. There were 5.1 million separations from employment on the back of 6.65 million job openings during October, according to the survey. … READ MORE >