If that was the economic recovery we paid trillions of dollars for, then I want my tax money back!
Real-time economic indicators of business activity are falling back to neutral, and even dipping a bit.
“The energy for reopening businesses and for just general activity is starting to level off. This is something we are going to watch extremely closely.”
The recovery is likely waning because of the rising number of coronavirus infections, which are leading government officials to re-institute social and economic policies such as wearing masks and reducing restaurant capacity. And then there is consumer fatigue. It seems like people are just sick and tired of the worry, so it’s easier to stay home.
As for the funding, both Democrats and Republicans have signaled they are willing to shovel more money at the economy, it’s just a matter of when and how much. And then there’s the Federal Reserve, which has printed more than $3 trillion in new money since the middle of March and shows no sign of stopping.
When all the stimulus finally wears off, we could be in for a world of economic hurt.