The U-6 unemployment rate - a less popular reading than the commonly cited U-3 - suggests additional fiscal support could be unnecessary and pose serious risks, says James Paulsen, chief investment strategist at The Leuthold Group.
Passing sweeping new relief packages could spur strong inflation and force the government to tighten conditions prematurely, Paulsen cautioned.The US economy is receiving fresh fiscal support after months of plodding negotiations. But one measure of the labor market suggests the massive stimulus is unnecessary and potentially harmful to future growth, according to James Paulsen, chief investment strategist at The Leuthold Group.
The relief packages meet calls from economists and investors for additional fiscal support, with many pointing to the still-elevated unemployment rate as a sign of progress to be made. The most commonly cited measure is the U-3 rate, but the government's U-6 rate - which includes Americans working part-time for economic reasons and those marginally involved in the labor force - tells a different story, Paulsen said in a client note on Thursday.
The coronavirus pandemic initially pushed the U-6 rate to a record-high 22.9% in April. Yet easy monetary conditions and the $2.2 trillion CARES Act helped the rate retrace more than half of its climb in a matter of months. It took years for such improvement to take place following the 1982 and 2008 recessions, Paulsen noted.The rapid pace of recovery also comes as the country's policy response to the recession remains extraordinarily strong.
Walls Street Strategist 😂 why because it’s gonna hurt his/clients portfolios? The stock market has done well enough so far stop being so greedy.
If by HARM, he means LOOSENING THE GRIP EMPLOYERS AND BUSINESSES HAVE ON THE COMMON MAN, then perhaps he's right. I'm more inclined to think he's FULL OF SHIT, instead....
Well if a Wall Street rich know-it-all says the people shouldn’t receive more money then it must be true, right? Right 🙄
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Source: YahooNews - 🏆 380. / 59 Read more »
Biden makes case for $1.9T coronavirus relief plan, calls bypassing Republicans 'an easy choice'President Biden on Friday made the case for Congress to quickly pass his nearly $2 trillion coronavirus relief package even if it means abandoning Republican support, warning of an economy that's still in the grips of the pandemic.
Source: FoxNews - 🏆 9. / 87 Read more »
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Source: AP - 🏆 728. / 51 Read more »
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Source: ABC - 🏆 471. / 51 Read more »
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Source: MSNBC - 🏆 469. / 51 Read more »
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Source: AP - 🏆 728. / 51 Read more »