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Report Warns of Drop in Consumer Spending if Supplemental Unemployment Ceases

  • JPMorgan Chase Institute study determines that $600 a week supplemental unemployment has helped keep consumer spending levels healthy during COVID-19 pandemic
  • Warning that aggregate spending could drop 4.3 percent if at least some of the benefits are replaced
  • Congress still working on unemployment deal following expiration of enhanced benefits last week
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U.S. Producer Prices Fall Unexpectedly

  • U.S. producer prices unexpectedly fell in June as weakness in services offset rising costs for energy goods
  • Deflation remains unlikely as the economy battles depressed demand caused by the COVID-19 pandemic
  • Lower interest rates likely to continue
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Fed Buys More Corporate Bonds, But May Slow Purchases Soon

  • The Federal Reserve purchased $1.3 billion in corporate bonds in late June, on top of other purchases earlier in the month
  • The purchases are part of an effort to keep interest rates low and allow large companies to borrow money by selling corporate debt
  • The Fed has slowed such purchases in recent weeks and may stop altogether if the markets remain healthy
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Economists Push For Additional Direct Cash Payments to Aid Economy

  • A group of 153 economists calls for additional direct cash payments to Americans to help stimulate the economy
  • Payments under the CARES Act helped boost spending among lower income households, mostly for essentials
  • Supplemental unemployment funds set to expire at end of July
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