The hardest blow from President Donald Trump’s decision to shut down stimulus talks is set to fall on more than 12 million unemployed Americans, who already faced an increasingly tough time getting back to work.
Income support for the jobless has been plunging, even as the labor market’s recovery from the pandemic slump runs out of steam. An initial wave of re-hiring by companies has tempered and corporate giants like Walt Disney Co. and United Airlines Holdings Inc. have announced plans to lay off tens of thousands of workers –- highlighting the risk that many jobs lost during the coronavirus crisis won’t be coming back.
Federal Reserve Chair Jerome Powell sounded the alarm about job prospects for the unemployed, especially low-income Americans, in a speech Tuesday. He said income support has been crucial to the U.S. recovery, and urged the government to keep on spending until the economy is “out of the woods.”
That call was effectively rebuffed by Trump hours later, when he said there’ll be no further negotiations on another pandemic relief bill before the Nov. 3 election. U.S. stock markets tumbled on the announcement, before recouping most of the losses early Wednesday.