(NBC) Even as the unemployment numbers keep growing, some states may extend stay-at-home orders into June. This means “non-essential” businesses will likely remain closed and losing money for more weeks to come.
The head of the Federal Reserve says this coronavirus economy is worse than any recession since World War II.
The record number of Americans out of a job remains on the rise. The Labor Department reported that nearly three million people filed for unemployment just last week. That brings the total number over the past couple of months to 36 million.
Even as states begin phased-in returns to work, the Fed chief says more action from Congress to stimulate the economy may be necessary to avoid long-term damage. Powell’s blunt assessment sent stocks tumbling on Wednesday.
House Democrats are hoping to vote on a new $3 trillion package that includes money for state and local governments, extends unemployment benefits beyond July along with new direct payments for American families. President Trump said that’s not going to happen. “DOA,” he said. “Dead on arrival. Of course, Nancy Pelosi knows that. ”
But in a bi-partisan push, Maryland Governor Larry Hogan and New York’s Andrew Cuomo say the need is real, writing in a statement, “Each day that Congress fails to act, states are being forced to make cuts that will devastate the essential services the American people rely on and destroy the economic recovery before it even gets off the ground.”
New Jersey Governor Phil Murphy said his state, which has been hit hard by the pandemic, lost more than $3 billion dollars in revenue last month. “We cannot sustain a collapse of revenues without turning to unprecedented layoffs. Layoffs, by the way, of the very people we are relying on the most.”
All this as our grocery habits are starting to reflect the current economic situation. New market research shows cheaper store brands are now outpacing popular name brands and Americans are also cutting back on splurges like snacks and even sodas.
As some states now slowly start to reopen we’re starting to see a trickle of improvement in business and employment in those states. However, a group of economists from Harvard and the University of Illinois just announced new findings that as many as 100,000 small businesses may have already closed their doors permanently.
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