Many, though, had pencilled in smaller packages, more along the lines of the $892 billion stimulus passed in December. A winter resurgence of COVID-19 sent a partially recovered labour market into reverse last month as employers shed 140,000 jobs, especially low-income positions in restaurants, bars and other high-touch service industries. But, he adds, “the recovery in the labour market will take longer.”FED RESPONSE? Earlier Thursday Fed Chair Jerome Powell noted that early and forceful government spending had helped save the economy from a much more dire fate. Back then, the economy was years into what would prove to be a record-long expansion, and with the labour market on the upswing, the extra stimulus was seen as potentially overheating the economy.

Source: bd News24 January 14, 2021 23:26 UTC