U.S. Economic News

October 23, 2020

U.S. News

The Wall Street Journal reports that Fed officials and some lawmakers are increasingly calling for a rapid stimulus deal amid fears that further delay could threaten a repeat of the 2008 financial crisis’ lackluster recovery. Officials are concerned that as long as the pandemic holds back consumer spending, prematurely withdrawing fiscal support could allow longer-term recessionary forces to fully take hold. WSJ

According to Bloomberg, the COVID-19 crisis has exacerbated the gap in credit access between large and small firms, mirroring a similar gap between higher- and lower-income households. Divergence between large and small companies threatens to be a lasting consequence of the pandemic recession, as greater market concentration may perpetuate deepening wealth inequality and financial instability. Bloomberg