While hopes that a new coronavirus stimulus deal will be adopted before the election are fading, there is a possibility that Americans won’t see paychecks for months from now, ex-Fed insider Danielle DiMartino Booth believes.
The lack of a new relief package will have consequences for the entire American economy, the analyst told Boom Bust. She explained that the lack of funds will have an impact on consumer spending during the coming holiday season, which is already expected to plunge to a four-year low.
“We’re talking about 20 million-odd Americans, who are to continue to collect unemployment benefits, whose actual take-home per week, if you will, has really been eviscerated,” DiMartino Booth said.
If nothing changes before election day and then there is “a change of power in Washington,” it could take even longer for the US government to approve another round of stimulus measures, according to the former insider.
She said that even under the best-case scenario. when the new Congress gets seated and has a “ready-to-go” package, “you’re talking about money not getting to people until Valentine’s Day at the earliest of 2021.”
For more stories on economy & finance visit RT’s business section