U.S. News

The Wall Street Journal reports that the latest projections from the Congressional Budget Office show that the current economic recovery is likely to drag on through the end of next year due to collapsing investment spending and historic deterioration in the labor market. While job growth is expected to gradually recover in the second half of 2020, the CBO cited three factors that could further dampen labor market recovery: the end of the Paycheck Protection Program, persistent health fears, and increased state and local government layoffs. WSJ

According to the Financial Times, a new wave of discretionary consumer spending on durable goods has taken off as Americans cash in their stimulus checks. While surging demand for certain non-essential items has been a boon for some retailers, it by no means signals the end of the historic squeeze in consumer spending amid the rapid rise in unemployment. FT