WASHINGTON - The collapse of pre-election US stimulus talks threatens to inflict another wave of economic pain on Americans and curtail a recovery that's already slowed.
"The news means that growth will likely slow to mid-single digits in the fourth quarter from roughly 30 per cent in the third, and it makes the economy more vulnerable if another shock were to hit," said Jay Bryson, chief economist at Wells Fargo & Co. US stocks tumbled after Mr Trump's afternoon tweet, with the S&P 500 falling 1.4 per cent at the close after being up as much as 0.7 per cent earlier in the day.
"We believe the collapse of the fiscal stimulus talks increases the likelihood that the Fed will strengthen its QE program by moving to an open ended economic outcome-based program with a longer duration skew in its purchases in December," they wrote. WARNING SIGNS Several reports last week showed the rebound slowing or presented warning signs for the future. Employers added fewer jobs than forecast in September and many Americans quit looking for work. Weekly filings for unemployment claims remain well above pre-pandemic levels and Americans' incomes fell in August following the end of supplemental jobless benefits.
The focus has shifted to the spending measures that might get passed under whatever combination of White House and congressional control emerges from the Nov. 3 vote.
Why don’t you report that Pelosi has a ridiculous proposal that’s not aimed at relieving Covid effects?
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Source: BusinessTimes - 🏆 15. / 51 Read more »