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ince the U.S. economy was gradually reopened a couple of months ago, it has been showing signs of recovery. Millions of jobs have been brought back, as millions of businesses across the nation resume operations. At the same time, millions of other Americans still remain unemployed as the pandemic continues to persist. At the same time, money from the government stimulus packages is slowly drying up from people’s pockets. While all this is dawning on the unemployed Americans, the Fed officials have begun raising concerns from the threat posed on the economic recovery process. The officials are worried that a lack of another round of fiscal stimulus is a huge threat that would jeopardize the process of economic recovery that is moving faster than expected, according to minutes released on October 7, 2020, from the bank’s September meeting. In the September meeting, members extensively discussed the economic outlook, as they cited the economy was doing better than expected in good part due to the fiscal help provided by Washington. The minutes outlined the recovery in GDP as that point as being “rapid.”
FED OFFICIALS WORRIED THAT LACK OF HELP FROM CONGRESS WILL THREATEN RECOVERY, MINUTES SHOW 14
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The fiscal help from Washington is currently in jeopardy as talks between the White House and congressional Democrats have broken down and are likely not to resume before the November elections. “Many participants noted that their economic outlook assumed additional fiscal support and that if future fiscal support was significantly smaller or arrived significantly later than they expected, the pace of the recovery could be slower than anticipated,” the meeting summary stated. According to officials, small businesses
THE POWER IS NOW MAGAZINE | OCTOBER 2020
