U.S. Economic News
March 19, 2020
U.S. Economic Indicators
The Conference Board’s Leading Economic Index (“LEI”) ticked up 0.1 point in February following a 0.7 point increase in January, though the Conference Board notes that the LEI has yet to reflect the impact of the Covid-19 pandemic that escalated in the U.S. in early March. The improvement in the LEI was driven by a recovery in manufacturing that will likely be short-lived due to ongoing global supply chain disruptions and falling demand. Conference Board Report
Initial jobless claims increased 70,000 to 281,000 last week, the highest level for initial claims since September 2017. The four-week moving average rose 16,500 to 232,250. DOL Report
U.S. News
The Wall Street Journal reports that the pandemic is hitting local government finances hard as state and city officials increase spending to combat the public health crisis while losing revenue due to the cessation of economic activity. While some localities have amassed large rainy-day funds to draw from during downturns, an extended fiscal crunch will likely necessitate budget cuts, job losses, and federal assistance for many state and local governments. WSJ
According to the New York Times, the Federal Reserve announced it will extend emergency loans to money market mutual funds, a major savings vehicle for millions of Americans with a total value of around $3.8 trillion. The move is the latest in a series of steps the Fed has taken to keep financial markets functioning during the coronavirus pandemic and avoid a repeat of the huge money market fund losses experienced during the 2008 financial crisis. NYT