Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on the day's biggest business stories

Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Photo: Drew Angerer/Getty Images

The Senate has adjourned until 3pm on Monday, as Congress failed to reach an agreement on extending extra unemployment benefits that are set to expire on Friday.

Why it matters: Tens of millions of Americans are out of work and have been receiving $600 per week on top of their regular unemployment payments. That money has been used both to pay expenses and to prop up the broader economy via consumer spending.

The state of play: Congress and the Trump administration are still painfully deadlocked over the next stimulus bill, with at least 20 Senate Republicans pledging to vote "no" on another massive relief package no matter what.

  • Sen. Ron Johnson (R-Wis.) attempted Thursday afternoon to unanimously pass a short-term extension of the benefits at a reduced level of $200 per week, which was summarily rejected by Minority Leader Chuck Schumer (D-N.Y.).
  • Schumer then attempted to pass the $3 trillion relief bill that House Democrats approved in May. That, too, was blocked and condemned by Majority Leader Mitch McConnell (R-Ky.) as a "totally unserious proposal."

Between the lines: "The procedural shenanigans were not meant to actually enact policy, but rather to help further the political blame game as Congress prepared to leave town without an agreement," the Washington Post notes.

The big picture: The staggering 32.9% contraction in annualized GDP last quarter quantifies just how big a hole the U.S. economy is in — dwarfing the previous record set in 1958, when GDP shrank at an annualized 10% rate.

  • If it wasn’t clear before today, the economy is going to need support to dig its way out. And that assumes we don’t fall back in, which may already be happening as the coronavirus surge forces some states to clamp down again.
  • "The path of the economy will depend significantly on the course of the virus," Fed chair Jerome Powell said yesterday. "It's so fundamental."

Zoom out: When the U.S. shut down its economy and passed the $2.2 trillion CARES Act in March, a GDP contraction of this size was not out of the realm of possibilities, notes former Treasury official Tony Fratto.

  • What nobody was projecting was that weekly unemployment claims would still be running at 1.4 million in July — the product of a failed coronavirus response.

The bottom line: More than 30 million Americans could see their incomes drop 50%–75% when the unemployment benefits expire on Friday.

Go deeper

Unemployment plunges as the pandemic continues

Data: BLS; Chart: Axios Visuals

Here's the good news for workers: The unemployment rate fell by a full percentage point to 6.9% last month — in the face of rising coronavirus cases, continued pressure on businesses, and no economic relief in sight from the government.

The bad news: That rapid snapback in employment after initial economic lockdowns eased is over. Job growth has slowed every month since June.

Felix Salmon, author of Capital
Nov 5, 2020 - Politics & Policy

Government gridlock would be the worst-case economic scenario

Illustration: Sarah Grillo/Axios

Economically, the outcome of the election could not be worse than where we seem to be headed: A Biden presidency with a Republican Senate.

Why it matters: "Gridlock" — where the president's party doesn't control both houses of Congress — is being cheered by financial markets wary of political overreach. Stocks are not the economy, however. In the depths of a global pandemic, fiscal boldness is exactly what's needed for the economy as a whole. The problem is that political obstructionism is all but certain.

A 50-50 Senate: Democrats in power but not control

Illustration: Sarah Grillo/Axios

If Joe Biden wins the presidency, he could end up with a 50-50 Senate split — an outcome giving Democrats formal control of the upper chamber but also empowering individual senators greatly and requiring a procedural feat to abolish the 60-vote filibuster rule.

Why it matters: A President Biden would need a Senate majority to make good on many of his campaign promises.