U.S. Economic News
July 28, 2020
U.S. Economic Indicators
The Conference Board’s Consumer Confidence Index decreased from 98.3 (revised) in June to 92.6 in July. Consumers’ assessment of current business and labor market conditions improved, while the near-term outlook for income, business, and labor market conditions worsened. Conference Board Report
U.S. News
The New York Times reports that the Senate and House of Representatives are pressed for time to reach a consensus on the next coronavirus relief bill, with the extension of jobless aid being one of the most divisive provisions. House lawmakers want to maintain the $600-per-week supplement for unemployment insurance through January, while the Senate bill seeks to eventually replace the lump sum with a benefit of up to 70% of a worker’s prior income. NYT
The Financial Times reports that a new analysis by Accenture finds that U.S. bank profits could be hit twice as much as their European counterparts due to massive provisions for loan losses by U.S. banks. There are several underlying reasons for U.S. banks’ higher loan loss provisions, including greater uncertainty from widespread forbearance programs that undermine their ability to make lending decisions based on credit scores. FT