Tag: U.S. economy

Mnuchin sees ‘strong likelihood’ of needing another COVID-19 relief bill

The Hill logoTreasury Secretary Steven Mnuchin on Thursday said there is a “strong likelihood” that another coronavirus relief bill will be needed as more states start to reopen and the economy struggles to stabilize.

“We’re going to carefully review the next few weeks,” Mnuchin said in aninterview with The Hill’s Bob Cusack during a virtual event. “I think there is a strong likelihood we will need another bill, but we just have $3 trillion we’re pumping into the economy.”

“We’re going to step back for a few weeks and think very clearly how we need to spend more money and if we need to do that,” he added. Continue reading.

GOP senators: More relief needed now

The Hill logoSenate Republican support for moving the next coronavirus relief bill as soon as next month is growing after Federal Reserve Chairman Jerome Powell warned lawmakers this week that the economic damage caused by the pandemic could last for years.

Senate Majority Leader Mitch McConnell (R-Ky.) has put the brakes on further coronavirus relief negotiations, citing the budgetary impact of trillions of dollars in unanticipated spending.

But a growing group of GOP senators, which includes some of the conference’s most vulnerable members in this year’s elections, say they shouldn’t let another month pass without significant progress on another economic relief package. Continue reading.

President Trump’s senior advisers now predict swift economic recovery, despite warnings that major problems could persist

Washington Post logoWhite House officials are optimistic the economy will come roaring back this year, but Fed officials have said the unemployment rate could soon jump beyond 20 percent

White House officials are increasingly predicting a swift economic recovery as they break off talks with Congress on additional federal stimulus, expressing optimism that the “reopening” of states will reverse the economic damage caused by the novel coronavirus.

President Trump and his senior advisers, encouraged by the relative strength of the stock market and some indicators like credit card receipts, have in recent days expressed confidence that the U.S. economy will roar back to life in the second half of this year despite staggering increases in unemployment and small-business closures.

“It almost feels like today is the first day,” Trump said during a White House meeting on Monday. “People are starting to go out. They’re opening. They get it.” Continue reading.

Mnuchin defends White House push to reopen economy as Democrats voice growing concerns

Washington Post logoOne Democrat alleged Mnuchin was putting workers’ lives at risk by moving too quickly

President Trump’s drive to swiftly reopen the economy came under fire Tuesday from Democratic senators who pointedly questioned the administration’s strategy, forcing Treasury Secretary Steven Mnuchin to insist the White House would not sacrifice workers’ lives for economic gain.

But the growing insistence by Trump and Republican lawmakers to push for reopening while halting any new talks about aid has created a stark divide in the government’s approach. As Trump has largely shut down negotiations for more emergency assistance, Federal Reserve Chair Jerome H. Powell warned Tuesday that much more may be needed.

>“We may need to do more, and Congress may, as well,” Powell told lawmakers Tuesday. Continue reading.

Fight emerges over unemployment benefits in next relief bill

The Hill logoA recent boost to unemployment benefits is shaping up to be a major flashpoint in negotiations over the next coronavirus relief package.

For weeks, out-of-work Americans have been eligible to receive an extra $600 a week on top of regular jobless benefits from their state. The extra amount was part of the $2.2 trillion pandemic response bill signed into law by President Trump in late March.

Now, Democrats are eager to extend that benefits bump beyond the end of July, when the program is slated to expire. And they’re drawing battle lines ahead of talks between the White House and Congress on another rescue package. Continue reading.

Poll: Two-thirds of voters say the economy is on the wrong track

The Hill logoVoter pessimism about the economy has spiked in May, with a majority saying they expect to be in a recession that lasts at least until the end of the year.

The latest Harvard CAPS-Harris Poll found that 65 percent of voters surveyed believe the economy is on the wrong track, compared to 27 percent who said it is on the right track.

That’s a major spike from the same poll only one month ago, when 58 percent said wrong track and 32 percent said right track. In January, before the coronavirus spread through the U.S., resulting in an economic shutdown, the poll found 51 percent of those surveyed viewing the economy as being on the right track and only 36 percent saying it was on the wrong track. Continue reading.

‘Hang Fauci’ Sign Brandished Amid Lockdown Protesters Trump Hailed As ‘Great People’

The chilling message was part of a filmed report on the protest by TV journalist Kevin Vesey, who has become a target of Trump on Twitter.

A disturbing sign with the words “Hang Fauci” appeared in a news report about COVID-19 lockdown protesters whom President Donald Trump hailed on Saturday as “great people.”

The sign was part of a threatening rhyme reading: “Hang Fauci Hang Gates, Open Up All Our States.” It appeared in a local TV report Thursday on News 12 Long Island about the “Re-Open New York” protest that day in Commack.

The sign referred to philanthropist Bill Gates, who has sounded the alarm on pandemics, and Dr. Anthony Fauci, the popular science expert on Trump’s coronavirus task force and the director of the National Institute of Allergy and Infectious Diseases. Fauci has warned of serious health consequences if the nation reopens the economy too quickly and drops safety precautions during the COVID-19 crisis. Continue reading.

Critics say Trump, Congress fumbling economic response to COVID-19

The Hill logoTen weeks after President Trump signed the first coronavirus relief bill into law, many economists, business groups, lawmakers and labor advocates contend the multitrillion-dollar response has been insufficient, misguided or both.

Despite nearly $3 trillion in emergency spending, much of the economy appears to be in free-fall, and there are warnings of a long and painful road to economic recovery.

“From a jobs perspective it is as if we have done nothing,” Damon Silvers, policy director of the AFL-CIO, commented on the unprecedented actions taken by Congress, the White House and the Federal Reserve. Continue reading.

 

Fed Chair Warns the Economy May Need More as Congress Hesitates

New York Times logoJerome H. Powell pointed to potentially dire consequences if a lasting economic downturn is not averted with forceful policies

The Federal Reserve chair, Jerome H. Powell, delivered a stark warning on Wednesday that the United States was experiencing an economic hit “without modern precedent,” one that could permanently damage the economy if Congress and the White House did not provide sufficient financial support to prevent a wave of bankruptcies and prolonged joblessness.

Mr. Powell’s blunt diagnosis was the latest indication that the trillions of dollars that policymakers have already funneled into the economy may not be enough to forestall lasting damage from a virus that has already shuttered businesses and thrown more than 20 million people out of work.

Yet the warning comes as discussions of additional rescue measures have run aground, with Democrats proposing sweeping new programs and Republicans voicing concerns over the swelling federal budget deficit, which is projected to hit $3.7 trillion this year. President Trump and his economic advisers have pressed the pause button on negotiations for additional spending, waiting to see how much the economy rebounds as states begin lifting restrictions on business activity.

Paul Krugman explains how the GOP’s disdain for workers will tank the economy

AlterNet logoThere was no shortage of terrible news coming from the U.S. Bureau of Labor Statistics on Friday, May 8, when the BLS reported that unemployment had reached 14.7% in the United States in April and that the country had lost 20.5 million more jobs last month — that is, in addition to all the jobs lost in March thanks to the coronavirus pandemic. And Friday’s jobs report doesn’t take into account the jobs that have been lost in May so far. Despite all that, Republicans are hardly going out of their way to help all the Americans who are struggling badly — and liberal economist Paul Krugman calls them out for it in his New York Times column.

“COVID-19 has had a devastating effect on workers,” Krugman explains. “The economy has plunged so quickly that official statistics can’t keep up, but the available data suggest that tens of millions of Americans have lost their jobs through no fault of their own, with more job losses to come and full recovery probably years away. But Republicans adamantly oppose extending enhanced unemployment benefits.”

Krugman adds that because “most working-age Americans receive health insurance through their employers,” millions of Americans are — during a deadly pandemic —  losing their health insurance when they lose their jobs. Continue reading.