Joe Brusuelas, RSM US chief economist, discusses the effect of the coronavirus on the labor market and the economy: https://youtu.be/rgvCtk_kF9g ... READ MORE >
Joseph Brusuelas
For states struggling with coronavirus, stimulus package is likely not enough
The increase in out-of-work Americans became a tsunami of household distress as municipalities and states took action to stop the spread of the coronavirus. All states – with the exception of Utah – reported significant numbers of workers filing for unemployment benefits as state and local authorities and businesses took the lead in slowing the virus by ... READ MORE >
New jobless claims surge, signaling hardship for working America
Initial claims for unemployment insurance soared in the past week, as the spread of the coronavirus multiplies and the first tranche of service-sector layoffs floods state unemployment offices. This week’s initial claims increased to 3.283 million from last week’s 282,000, suggesting a substantial drop in income and household spending in the coming weeks and ... READ MORE >
Why shutting down the economy makes the most sense
Just when social distancing gained broad adoption to stem the spread of the coronavirus, some are now urging that the American economy be restarted even before the virus has yet to be fully mitigated. This stands in contrast with stronger measures taken in Europe and England, which on Tuesday announced that its entire population should shelter in place ... READ MORE >
Fed takes robust action to backstop the economy and financial markets
The Federal Reserve moved aggressively on Monday to mitigate what is going to be a severe disruption in the American economy by committing to an open-ended quantitative easing program and the construction of the Main Street Business Lending Program to support small and medium-sized firms. That disruption will take the form of a depression-like set of ... READ MORE >
Just how deep is the supply shock? West Coast ports tell the story.
West Coast port activity implies that the supply shock affecting the domestic economy is broad and deep. This strongly suggests a sharp decline in consumption and industrial activity as firms struggle to acquire supplies to make final goods and consumers pull back because of a lack of finished goods on the shelves. Without a doubt, this also ... READ MORE >
Jump in initial jobless claims signals an impending recession
Weekly claims for unemployment benefits jumped to 281,000 for the week ending March 14, likely the first sign of the catastrophic disruption to normal life and an impending economic recession caused by the spread of the coronavirus. The only real question now is if the damage caused by the shocks cascading throughout the economy will surpass the cyclical ... READ MORE >
Preview: Jobless claims to soar in near-term
Over the next few weeks, U.S. data flow will capture the impact of the supply, demand and financial shocks that are cascading throughout the economy. Policymakers should anticipate a wave of layoffs reflecting the stunning downturn in the economy. The most important of the data is the evolution of the weekly initial jobless claims data that will ... READ MORE >
Revising growth lower: A reset is coming for the U.S. economy
The American economy is simultaneously absorbing three distinct shocks, each of which will act as a large drag on economic growth during the current and second quarters of the year. The impact of the coronavirus will cause a disruption to American society that will last well beyond the current crisis and will affect growth over the next three to four ... READ MORE >
U.S. retail sales declined in February amid coronavirus uncertainty
Consumers pulled back across the board on spending in February as the onset of the coronavirus began to shape household expectations about the economy and society. Top-line sales declined by 0.5% while the control group that feeds into the estimation of gross domestic product was flat on the month. Excluding auto sales, which declined by 0.4%, and excluding ... READ MORE >