Economics
Markets Walk Dangerous Tightrope Before U.S. Stimulus Ends
- Third quarter GDP could face hit, Deutsche Bank calculates
- Markets trading on eventual deal getting done, strategist says
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The remarkable rebound in U.S. equities from the depths of the Covid-19 crisis in March faces a fresh test in coming weeks, with the American economy set for a withdrawal of a key stimulus support.
The average unemployment benefit for Americans put out of work will tumble by more than 60% at the end of July, hobbling the incomes of millions of laid off workers -- many of whom may not be able to return to their jobs given the renewed shutdowns now affecting swaths of the economy from California to Florida.