The Fed is more concerned about the economy and has taken the unprecedented step of telling Congress it will monetize whatever spending Congress desires. The latest weekly unemployment data confirm the Fed’s worst fears: The Recovery has stalled! The framers of the 1913 Federal Reserve Act made it explicit that the Fed was not to “monetize” the Treasury’s debt. When the Pandemic Unemployment Assistance (PUA) ICs are added in, there were an unfathomable 1.26 million new unemployment claims the week ended October 3rd. Besides new layoffs, state unemployment data show 10.6 million Continuing Claims (CCs) and 25.6 million when the PUA program is added in.

Source: Forbes October 10, 2020 03:33 UTC