Featured Market Data
Holiday Stress
Two main factors impacted consumers in December: 1) some regions of the U.S. saw increased restrictions due to rising Covid-19 cases and hospitalizations following the Thanksgiving holiday and 2) Congress spent most of the month in a standoff over whether to pass a new round of stimulus. A new relief package was passed late in December and President Trump signed the legislation on December 27th. Meanwhile, the high frequency data showed signs of renewed weakness as jobless claims rose in December to their highest levels in three months and restaurant bookings slid through the middle of the month. Despite the new aid package, economic strain may continue in January if the holidays lead to rising cases and new restrictions.
Source: Wall Street Journal, Bloomberg
Recent News
New Aid Coming for Americans
The new Covid-19 aid package will provide $900 billion of relief to struggling Americans. The legislation provides direct payments to most adults and their dependents while also providing billions of dollars to help airlines, entertainment venues and farms. The legislation renews two unemployment assistance programs including up to 13 weeks of additional benefits and benefits to “gig” workers and others who don’t generally qualify for jobless aid. In early December, nearly 14 million people were receiving benefits through these programs. The largest part of the relief package is allotted to help small businesses including extending the Paycheck Protection Program.
Source: Wall Street Journal
