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US recession status: Stimulus negotiations suspended and already threatening fragile recovery



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Americans are reducing their spending because they are planning a recession that may not end until the coronavirus pandemic is over.

Angela Lang / CNET

US President Donald Trump demands that the stimulus negotiations end on a new stimulus bill presents a new wrinkle in the history of the country’s economic recovery from the deep financial cracks in ongoing coronavirus pandemic. The stimulation package was expected to contain one second stimulus control and renew improved unemployment benefits. Without it, perhaps many of those hardest hit by the recession will not receive any form of economic relief until at least 2021. How this may affect the US’s already uncertain recovery remains to be seen.

So far, economic bounce has so far been a mixed bag with strong divisions in socio-economic ranks. Example: Although the stock market and the average US household wealth are both near record highs, the US may soon face a shortage of food bank meals with potentially catastrophic consequences for the country’s record 22.3 million adults who do not have a reliable food source. Over 12% of these households include children, according to US Census data.

What causes this K-shaped recovery where well-educated so-called white-collar workers and the industries that cater to them thrive while working-class people struggle? In short, coronavirus prevention, aka, lockdown. While office workers have either been able to move to work from home or have returned to the office with new security measures in place, people whose income is linked to public life, such as restaurant and hotel employees, remain largely unemployed or underemployed.

Many of the protections introduced early in the pandemic, such as Improved $ 600 unemployment and that Salary check protection program, has long dried up, despite the fact that nearly twice as many U.S. workers are still unemployed compared to pre-pandemic numbers, according to the U.S. Labor Department (PDF).

So what does the road to economic recovery look like from here? We have compiled the latest news about the coronavirus recession, where to find help, what makes a recession and the government’s response. This story is intended as an overview, not financial advice. It is updated as the situation develops.






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Latest coronavirus recession news

  • Trump unexpectedly and abruptly ended negotiations on a second stimulus bill Oct. 6 in a series of tweets that partially said, “I have instructed my representatives to stop negotiating until after the election.”
  • Stimulus is needed, Federal Reserve Chairman Jerome Powell stressed, hours before Trump’s tweets. “Too little support would lead to a weak recovery and create unnecessary difficulties for households and businesses.”
  • The economic recovery is coming to the United States faster than the rest of the world, according to S & P data which shows that US production is likely to fall by more than half of the share of other countries. With other measures, the recession continues.
  • Office rents are plummeting across the country, as companies have moved to a predominantly remote workforce, with San Francisco experiencing the steepest declines.
  • Housing prices continue to soar in perhaps the most unexpected repercussion of the “COVID economy”, where experts predict another six to twelve months of rising prices before supply and demand rebalance.

Where can you find additional resources for personal finance

If you have experienced financial difficulties as a result of the coronavirus recession, here are some tools to help you regain your financial balance.

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America’s growth year is over. Now we are facing an economic step.

Sarah Tew / CNET

When will the COVID recession end?

From an economic point of view, a recession ends when certain market requirements are met, which according to some estimates can happen about halfway through 2021. From a personal perspective, you may wonder most about your ability to work, pay your bills and secure your financial future.

Economists and health experts agree that the economy will not fully recover until the coronavirus pandemic is contained – but triggers a new wave of infections when locking measures are released. It happens either through flock immunity, an effective treatment for covid-19
, a coronavirus vaccine or any combination of all three.

Several vaccine candidates have shown promise in human trials. Still, most people do not get one until sometime next year.

How the government has tried to support the economy

The $ 2 trillion stimulus package approved as part of the CARES law in March represents the US government’s first attempt to counter a recession. The law on financial relief included incentive payments of up to $ 1,200 for most U.S. taxpayers, as well as a loan program for companies to continue to pay their employees.

So far, attempts have been made another stimulus package has stuck, with most analysts hoping for a deal before the election in November decreases for the day.

However, the Federal Reserve has stated that it will continue to keep interest rates close to 0% until 2023, which often has the effect of encouraging more borrowing, leading to more spending – and more spending generally improves the economy.

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Spending money on locally owned businesses (while wearing a mask and maintaining social distance) can help keep your finances afloat during the recession.

Jessica Dolcourt / CNET

How can I help others?

It is easy to feel helpless, but if you feel financially secure or have time to give, there are ways to make a difference. My CNET colleague Katie Conner has some excellent recommendations for things you can do to help your local community and business, including free donations such as online volunteer work or blood donation, as well as ordering withdrawals or delivery and purchasing gift cards to the restaurant.

Other local businesses such as bookstores, garden centers, toy stores and stores may have a website where you can support them with an order.

The best advice I have heard so far on how you can individually help strengthen your finances is this: Spend to the best of your ability and within your resources.




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