U.S. Economic News
August 24, 2020
U.S. Economic Indicators
The Chicago Fed National Activity Index moderated from +5.33 in June to +1.18 in July. Three of the four broad categories of indicators – employment, consumption, and production – contributed positively to the overall index, while the sales, orders, & inventories category contributed negatively. Chicago Fed Report
U.S. News
The Washington Post reports that without the extension of government support to low-income households, millions of Americans are at risk of falling into poverty as the safety net shrinks and federal benefits expire. While the Cares Act proved to be widely successful in keeping families on the margins from dropping below the poverty line, poverty rates will likely rise and exceed the levels observed during the last recession if employment stays around 10% and no additional government support is delivered. WaPo
Bloomberg writes that a majority of economists surveyed by the National Association for Business Economics said the U.S. economy will emerge from recession in the second half of 2020 or at some point in 2021. A majority of respondents see additional federal stimulus as critical to the recovery, while 80% believe there is at least a one-in-four chance of a double-dip recession. Bloomberg