Title: $600 Unemployment Checks — Congress Has No Choice But To Extend Benefits
Headings: $600 Unemployment Checks — Congress Has No Choice But To Extend Benefits
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May 27, 2021,03:40pm EDT
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Final Thoughts

Content: But what will happen if July 31 comes and goes with the Senate coming to no conclusion about an extension of federal unemployment benefits and the possibility of a second round of economic stimulus? Whether such an event will trigger another meltdown on Wall Street is the stuff of speculation. But there’s little doubt the loss of hundreds of billions of dollars in consumer spending will translate into lower revenue and profits to America’s largest companies. The impact of the spending decline, while not certain, has historically been a negative event for equities. The combination of a sudden decline in purchasing power with a resumption in the COVID bear market from earlier this year could be the one-two punch that crashes the economy, and the markets along with it. The Timing of Federal Unemployment Benefits Expiration Couldn’t be Worse
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The expiration of that benefit, should it actually happen, couldn’t come at a worse time. The number of new COVID-19 cases in the US has reached record levels. In recent weeks they’ve been averaging over 60,000 per day, sometimes topping 70,000. That’s roughly double the number of new daily cases recorded at what was believed to be the peak of the virus back in April. The acceleration in new virus cases is putting a damper on predictions of economic growth that were expected for the third quarter.