No Stimulus Means Economy’s Fate Hangs on Next Few Months
Momentum could keep us going until the election is over and a vaccine arrives.
Consumer spending is still growing, but for how long?
Photographer: Spencer Platt/Getty Images
With the breakdown of U.S. fiscal relief talks on Tuesday, the timeline for a robust economic recovery might now be an early 2021 story. By that point the distribution of vaccines for the coronavirus might be underway, and an election win by Democratic presidential nominee Joe Biden, which looks increasingly likely, could usher in the kind of fiscal relief package that Republicans have blocked.
The issue for the economy is avoiding permanent scarring for a few more months. While fierce headwinds remain, there does appear to be enough momentum for the economy to continue on at least a slow recovery path until we have the tools to undo more of the damage that's occurred since the onset of the pandemic.