Congress Offers the Help the Economy Desperately Needs

The economy isn't going to bounce back quickly on its own from the coronavirus pandemic. State reopenings, premature or not, will restore a modicum of economic activity, but it won’t be enough to put many local businesses in the black. If the virus comes roaring back in states that reopen, it will cause a wave of fear that will depress demand and send some places back into lockdown. Meanwhile, wary consumers are saving their money, which will depress demand. And global trade networks and supply chains will remain in shambles for some time as the pandemic reverberates around the world. Meanwhile, although the pace of unemployment claims has slowed slightly, millions of Americans continue to lose their jobs:

The federal government therefore can't afford to let up on its attempts to relieve Americans’ pain and preserve as much economic activity as possible. The $2 trillion CARES Act was an encouraging example of bold bipartisan action that addressed many of the country’s most urgent needs back in late March. But as Federal Reserve Chair Jerome Powell emphasized last week and is likely to reiterate in Senate testimony today, the country is overdue for another round of stimulus.