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Continued Negotiations Offer Narrow Possibility of COVID-19 Relief Deal

  • House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin are continuing negotiations on passing new COVID-19 relief bill
  • Hopes for bipartisan deal before November’s election dimmed after a proposal advanced by Senate Republicans failed to advance
  • Mnuchin advises that concerns about the deficit or Federal Reserve balance sheet should not inhibit relief
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Supply Chain Shakeup Likely as Pandemic Exposes Vulnerabilities in Global Network

  • COVID-19 highlights certain problems with globalized supply chains, such as product shortages and difficulties in shifting to meet a sudden surge in demand
  • Companies will face the challenge of remaining competitive while developing more resilient ways of acquiring supplies
  • Strategies include avoiding sole suppliers for crucial products and using innovative technologies to improve efficiency
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Will COVID-19 Cause Companies to Shorten Their Work Week?

  • Anthropological evidence suggests that people generally worked about 15 hours a week during the course of human history
  • Studies have suggested that productivity begins to deteriorate after 50 hours per week, with elevated health risks for long work days
  • COVID-19 restrictions raise the possibility that companies may be more likely to shorten work week to four days or re-evaluate how productivity is measured
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SBA CARL Approval Deadline Approaching on Sept. 27

  • Funds through the Small Business Association’s Community Advantage Recovery Loan program must be approved by Sept. 27
  • Flexible funding can be used to cover a variety of expenses
  • 15 hours of technical assistance required for approval
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American Companies Largely Ignoring Demands to “Decouple” From China

  • President Donald Trump offers both incentives and threats in effort to get American companies to move manufacturing out of China
  • In a recent survey, less than 4 percent of responding American companies with operations in China say they are moving some production to the United States
  • Companies begin to diversify production and supply chains due to COVID-19, but U.S. remains a lower ranked choice
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Spike in Used Vehicle Sales Drives Higher U.S. Consumer Prices in August

  • U.S. consumer price index rises 0.4 percent in August
  • Higher demand for used cars and trucks accounts for much of the increase
  • Inflationary pressures rise soon after Fed policy treating rising prices with more leniency
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Trump Refuses to Extend Deadline on TikTok Sale

  • U.S. government will not extend a Sept. 20 deadline for the sale of the Chinese-owned video sharing app, raising possibility that it might be banned in the United States
  • TikTok has proven especially popular among Generation Z, with businesses beginning to capitalize on its marketing potential
  • Negotiations for a sale to an American buyer have been ongoing, but complexities in the process may make it difficult to close a deal by the deadline
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White House Seeks Stopgap Funding Exemption For Columbia Submarines

  • Budget uncertainty threatening to delay design and construction for Columbia-class ballistic missile submarine
  • Two-boat buy is classified as a new start and thus not eligible for authorization under a stopgap funding measure if Congress does not pass a budget
  • White House seeking an exemption for the submarines as well as several other defense measures
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Slimmed Down COVID-19 Bill Fails in Senate as Hopes Dim for Additional Relief Before Election Day

  • Senate Republicans unify around slimmed down COVID-19 relief bill, but the measure fails as Democrats denounce it as inadequate
  • $300 billion proposal included additional funding for Paycheck Protection Program as well as $300 a week in additional unemployment benefits
  • Vote raises worries that additional relief measures before Election Day are unlikely, though negotiations continue and several incumbents are under pressure to deliver results
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Connecticut Unemployment Remains Elevated Despite Some Job Gains

  • Despite national downward trend in unemployment rate, Connecticut jobless rate remains persistently high
  • State economists say part of elevated rate may be due to statistical misclassification, but that the state’s economy is likely to remain fragile this fall
  • Circumstances could drive further support for “sin tax” revenue when state legislature reconvenes
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