JPMorgan slashes its forecast for US economic growth amid lack of new stimulus - Business Insider

is the latest Wall Street bank to slash its US economic growth forecast due to weakened hopes for near-term stimulus.

The lack of fresh fiscal aid has an "immediate impact" on household incomes and will drive a contraction in disposable income into 2021, Michael Feroli, the bank's chief economist, said in a Thursday note. Household incomes will face the "most immediate impact" from the lack of additional fiscal aid, Feroli said. Another spending package would drive a 24% annualized increase in disposable income through a second round of relief checks and the resumption of expanded unemployment benefits, according to the bank. Instead, the lack of a near-term bill will drive a 12% contraction in disposable income next quarter.

The absence of a new stimulus bill has its upsides, the economist added. JPMorgan lowered its 2021 fiscal deficit estimate to $2 trillion from $3.5 trillion in the note, citing the lack of a deal. The forecast stands to change further before the year is out, as the presidential election's outcome can change the outlook for federal spending plans.

4 Problems with a Stimulus Check! Are they any good for economic recovery? Why do we need them? How about cheap credit? 👇 stimuluscheck stimuluspackage stimuluschecks economy COVID19

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Inside the last workshop making traditional Portuguese cowbells by hand - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Source: BusinessInsider - 🏆 729. / 51 Read more »

Inside recent sports media and gambling deals: expert analysis - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Source: BusinessInsider - 🏆 729. / 51 Read more »

A look inside the Grace Hopper Celebration for women in tech - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. If you want to take your website to the first page of Google , SEO backlinks that help increase traffic, increase website ranking contact now
Source: BusinessInsider - 🏆 729. / 51 Read more »

Look inside a 130-year-old church in Vermont transformed into a modern, 5-bedroom home - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Source: BusinessInsider - 🏆 729. / 51 Read more »