Top White House economist set to depart amid coronavirus recession

25th June 2020

The void left by Hassett, a regular TV presence who is well-liked by the president and top White House aides, along with Philipson will leave the president with fewer economic voices within the upper echelons of the White House, aside from National Economic Director Larry Kudlow and his top trade guru, Peter Navarro. Top administration […]

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‘It’s going to be a slow slog’: Economists knock down hopes of quick rebound

19th June 2020

The White House has focused on certain statistics to bolster its election-year narrative, but it rarely acknowledges that widespread recovery and a return to full employment will hinge largely on the country’s ability to contain a virus that has infected about 2.2 million Americans and continues to spread. Powell has been among the most sobering […]

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Powell’s warning on pandemic clashes with Trump’s upbeat tweets

17th June 2020

The Fed chief’s testimony came a week after the central bank projected the economy would ultimately contract by a staggering 6.5 percent this year, despite regaining some ground in the second half of the year, and conflicted with the narrative from Trump, who trumpeted positive economic data. “Wow! May retail sales show biggest one-month increase […]

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Kudlow says $600 additional unemployment checks will end in July

15th June 2020

Kudlow said that “almost all businesses” understand the $600 additional benefit is “a disincentive.” He said the Trump administration is instead “looking at a reform measure” that will provide an incentive for returning to work, but it will not be as substantial. “It will not be as large, and it will create an incentive to […]

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Fed’s Powell walks tightrope as economy faces new uncertainty

14th June 2020

“What Powell has been warning is … ‘Don’t keep looking at us, what we’re doing is making sure it doesn’t get worse,’” said William Spriggs, chief economist at the AFL-CIO. Central to the Fed’s messaging will be the release of its forecasts for how the economy will fare over the next few years, a quarterly […]

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Fed sees need for more small business aid, citing ‘acute risks’ to survival

13th June 2020

The Fed said three-fourths of small businesses with employees have applied for government assistance through the so-called Paycheck Protection Program, which Congress created in March to avert layoffs. The program allows businesses to apply for low-interest loans that can be converted into grants if they maintain payroll. The takeup rate suggests the program “is extremely […]

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Dow sinks 1,800 as virus cases rise, deflating optimism

12th June 2020

The selling comes as coronavirus cases rise in the U.S., with some of the increase likely tied to the reopening of businesses and the lifting of stay-at-home orders. Cases are rising in nearly half the states, according to an Associated Press analysis, a worrying trend that could intensify as people return to work and venture […]

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Fed’s dire outlook: GDP seen shrinking by 6.5 percent this year

11th June 2020

“This is the biggest economic shock, in the U.S. and in the world, really, in living memory,” Fed Chair Jerome Powell said at a press conference after central bank officials met in Washington. ”We went from the lowest level of unemployment in 50 years to the highest level in close to 90 years, and we […]

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Social distancing will suppress recovery despite emergency aid, CBO chief says

10th June 2020

“Continued business closures and the reduction in hours worked mean that the supply of certain goods and services will remain suppressed,” the head of the independent budget agency wrote. “At the same time, as people limit their social interactions, household and business demand for many goods and services will be subdued.” “Therefore, CBO estimates that […]

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U.S. entered recession in February, ending record expansion

9th June 2020

The declaration underscores the widespread economic pain that has resulted from measures taken to combat the pandemic. Congress and the Federal Reserve have poured trillions of dollars into the economy since the recession began, and there are early signs that those efforts helped head off a much worse outcome; the unemployment rate, though still quite […]

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