Transcript for Is the economy showing signs of recovery?
Financial impact of co live in the latest on the economic recovery. For the first time since the pandemic hit in March weekly unemployment claims fell under one million. But there are still record highs with 963000. Americans filing claims. Just last week and some fifteen point five million total Americans are currently collecting unemployment benefits. I'm joined now by ABC's Deirdre Bolton and dear to it's of course welcome news that these unemployment claims are falling but. The economy and the Johns pictures still very much a deep dark hole can you. Put these numbers in context for us. Wii's shorthand so for example you mention this amazing numbers so we'll take a Victor he's aware we have themselves under a million and for the first time as since this lockdown began as you know in March so the fact. That you were Americans are applying for new unemployment benefits. That has to be a mini victory lap of sorts so this is the first time we've seen this kind of progress in basically five minds. We just have to take a larger view go and if we look at the number of Americans that it had to file unemployment benefits since the lock downs began. It is close to 56 it million so that's about a third of our workforce. That obviously is a huge numbers so while this number is promising we just have such a long way to go one other contextual point here. Is that if you look back to the last recession so between 2007 and 2009. The worst a week that we had during that time for new unemployment benefits. We had 665000. So every single week. Since the march a lock down we have surpassed even the worst week from that last recession we just have a long way back to you can't. Figure those numbers are staggering to put into perspective. I'm now we both know congress and the White House are stalled on negotiations over more economic relief measures. With no deal in sight no 600 dollar checks for people in need. What kind of economic fallout could we see in the weeks ahead if they're not able to get some kind of deal soon. So most economist that I have been speaking with they say we're gonna see eighty of facts of this stalemate in days it never mind weeks it never mind of minds. As we know that 600 dollar supplementary payment on top of unemployment benefits. That was such a lifeline to so many Americans using that my need to pay for groceries to pay for medical bills. To pay for rent so without that life client it leaves a lot of Americans really in a dangerous position we also know from data. Very few people have more than 400 dollars the Fed put out this study in saving so there's just very little margin of error consumer spending. Two thirds pop our economy so obviously the last night that people have in their pockets even to buy basics such as groceries. That shows up in our overall economic picture it you can't. Well Deirdre you mentioned the 400 dollars and yet on the other end of the X of the spectrum is Wall Street. Give us a sense of what's going on with the stock market which is now back near its free pandemic highs. Is the market out of sync with economic reality on main street or is this just a sign of the does this division between. The health of big companies vs small businesses and could the stock market come crashing down at some point. I think you can say that the stock market is not a reflection of the economy and that is for certain two different entities altogether. One of the reasons why we seen the stock market come back so much so eight out of the past ten weeks. Is because the Fed and the government have pumped trillions of dollars into our system that means any time a company wants to borrow money. It's cheap it's meant to be stimulus in that is why the Fed did it say the market and these larger companies have really had a lot of institutional support. If you like so that is certainly at play here as for the future there's always going to be this Tug of war as many people have told me. Pat a lot of the sentiment market sentiment is really driven by the virus so let's say we have good news about a potential vaccine. That's gonna be a catalyst you're gonna see a lot of the stocks it event neglected or beaten down Anke travel and leisure. Hotel airline stocks any of the services industries that are just really difficult to carry out right now without a vaccine you would see support for those stocks. By the same token and if there is a major setback he either are in the development of a vaccine. For a setback in the way that Colby is being a mansion or rather being managed to globally. Not you could really see that take a big chunk out of sentiment. Digger thank you there's so much unpack there we appreciate it.
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