Economics
Goldman’s Hatzius Sees Extra U.S. Jobless Benefit Cut in Half
- Congress may also provide $200 billion to states, cities
- Fed expected to keep near-zero interest rates through 2025
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Goldman Sachs Group Inc. chief economist Jan Hatzius expects U.S. lawmakers to cut in half the supplemental unemployment benefits that have propped up incomes during the pandemic, resulting in a slower recovery -- assuming they manage to pass anything at all.
After some interruption, due to political disputes, Congress will cut the extra weekly payment to $300 from $600, Hatzius said in a phone interview Thursday. On top of that, Hatzius and his team anticipate $200 billion in fresh support for cities and states.