Thursday's Market Minute: More Support Needed?

Yesterday, at the Fed Chair press conference, Jerome Powell said he expected a full economic recovery over time. But, before that can happen, the market may have to weather more problems: new coronavirus cases in the U.S. are rising, raising the potential for a second wave of the virus. If that happens, and the country locks down again, the economy will be in the same position as before – only, with massive government aid already spent in the first round. Powell said yesterday that millions of people may need further economic support, but when does that well run dry, and what happens after that? Another relief bill is in the works, but no one knows how much support the U.S. will ultimately need.

Perhaps the most optimistic thing Powell said was that the labor market “may have hit bottom”. Though the numbers are still high, any dip in the unemployment rate is welcome, and shows that jobs haven’t completely evaporated during shutdowns. The weekly jobless claims numbers come out this morning: join us at the TD Ameritrade Network to break down the report and what it means going forward.