Fed’s Harker: US employment won’t recover until 2023

Comments from Harker:

  • GDP growth unlikely to reach pre-COVID pace this year
  • Urges congress to consider additional support soon
  • Continued growth depends on slowing virus spread
 On the stimulus front, Pelosi and Mnuchin are making one final push for a stimulus. Deal they have talks planned today after she unveiled a $2.2 trillion plan on Monday.
The pared-back legislation would include another round of $1,200 stimulus payments to certain individuals under an income threshold, more money for the Paycheck Protection Program for small businesses, more aid to the US Postal Service, $75 billion for coronavirus testing and contact tracing, as well restoring the $600 a week additional unemployment assistance that expired in July. After pushing a plan for roughly $1 trillion in state and local aid in the last proposal, an idea roundly rejected by the White House, Pelosi and Democrats are now proposing $436 billion for state, local and tribal governments over one year.