Despite the overall drop in initial jobless claims in the latest week to 1.5 million, there were still nine states that reported significant increases in first-time applications for unemployment benefits. … READ MORE >
Economics
Weekly initial jobless claims: More questions than answers
First-time jobless claims increased by 1.542 million for the week ending June 6, the Labor Department reported Thursday. Over the past 12 weeks, 44.1 million people have filed for unemployment insurance, which is roughly equal to 27.9% of the 158 million pre-pandemic labor force. … READ MORE >
FOMC policy update: Fed signals that the worst is behind the U.S.
Policymakers at the Federal Reserve on Wednesday signaled that the worst of the pandemic-induced recession has passed as its summary of economic projections and “dot plot” rate forecast both implied that the zero interest rate policy will remain in place until the end of 2022. … READ MORE >
CARES Act expands access to loans for small and midsize businesses
The Coronavirus Aid, Relief and Economic Security (CARES) Act signed into law on Friday provides various options for small and midsize businesses facing liquidity challenges from the COVID-19 crisis. … READ MORE >
Surprise increase in jobs, but some worrying signs for the Canadian economy
Canada is coming back on line. Social distancing measures have been eased; “realer” time and high frequency indicators like traffic levels, public transportation use and restaurant bookings have increased. Canada added 289,600 jobs in the month of May, when economists had expected a decline of 500,000. The unemployment rate increased to 13.7%, but this was due to more people looking for work. … READ MORE >
Federal Reserve expands scope of Main Street Lending Program
With the Main Street Lending Program likely to be launched in the coming days, the Federal Reserve has once again announced updates that expand the scope of the program. … READ MORE >
FOMC preview: Expect cautious tone as Fed ponders policy shift
We will soon enter the era of post-pandemic economics that will feature stratospheric government deficits necessitating the turn to a seldom used policy called yield curve control. … READ MORE >
Defying gravity: The growing disconnect between the real economy and surging equity markets
There is a growing disconnect between the real economy and equity valuations that, if sustained, will result in slower growth and increased regulation of the investment industry. And that, in turn, will further undermine the legitimate underpinnings of capitalism. … READ MORE >
The coronavirus and civil unrest have highlighted the racial disparity in the American labor market
There is a clear and easily identifiable inequality in employment opportunities that persists to this day. Even as the worst of the economic free fall is now behind the U.S., the opportunity to address long-term and systemic inequities cannot be missed. … READ MORE >
Modeling the spread of the coronavirus: Two different worlds in the U.S.
Differences among the states in their responses to the coronavirus outbreak will undoubtedly affect the duration of the pandemic and the speed of the economic recovery in various regions of the country. … READ MORE >