Where stimulus is needed most
The Census Bureau's latest survey of Americans' forward-looking economic expectations found a particularly dour outlook.
Details: Three of the country's four most populous states expect to see at least one in four citizens lose some employment income in the next four weeks.
Don't sleep: Governor Brainard became the latest member of the central bank to unequivocally call for Congress to produce another fiscal stimulus package during a speech last week.
- “Apart from the course of the virus itself, the most significant downside risk to my outlook would be the failure of additional fiscal support to materialize.”
- “Premature withdrawal of fiscal support would risk allowing recessionary dynamics to become entrenched, holding back employment and spending, increasing scarring from extended unemployment spells, leading more businesses to shutter, and ultimately harming productive capacity."
The big picture: In addition to being an influential member of the Fed, Brainard is seen as likely to be the next Treasury secretary or Fed chair if Biden wins.