America is facing its worst rate of new coronavirus infections — and widespread sickness is expected to be compounded by economic pain from the necessary lockdown measures, much like we saw earlier this year.
Why it matters: What’s different now is the lack of near-term hope for stimulus as the country tries to control the virus — at a time when economists say it’s critical to mitigate fallout for the unemployed, businesses and municipalities.
- The key will be whether “policymakers in Congress can extend the income bridge” and prevent “a second-round negative impact on the economy from the deterioration in state and local budgets,” economists at Brean Capital said in a client note.
The big questions: If and when Congress will make progress on a deal. And what the Fed can do — or will do — on its own to provide economic support.