Joe Biden plans to nominate the former Federal Reserve chair as his Treasury secretary. She would play a leading role in helping the economy recover from the pandemic.
Pent-up demand from households that have been cooped up over the last eight months could drive a spending boom in the spring, providing a big boost to the economy.
U.S. employers added 638,000 jobs last month as the unemployment rate dipped to 6.9%. A winter spike in coronavirus infections threatens to further weaken job growth.
The U.S. is expected to report record-setting economic growth in the most recent quarter. But that won't repair all of the damage done during the spectacular downturn three months earlier.
The Labor Department says U.S. employers added just 661,000 jobs last month, as unemployment fell to 7.9%, showcasing an economic recovery that is losing steam.
The Federal Reserve left interest rates near zero Wednesday and pledged it was ready to use all of its available tools to support an economic recovery that appears to be weakening.
Consumer spending rose 1.9% last month — but the rebound slowed from May and June. Unemployment benefits continued to prop up spending in July, but that may change in August.
The Federal Reserve is adjusting its long-range policy on inflation and employment. The central bank said it's now more concerned with prices that are too low than with runaway inflation.
The expiration of emergency jobless benefits is draining $15 billion a week from the U.S. economy. President Trump has offered to replace half that money, but states have been slow to accept.
Initial unemployment claims had been above 1 million for 20 straight weeks. The total receiving unemployment also dipped, to 28.3 million, as of July 25.
As Congress debates whether to renew supplemental unemployment benefits for people thrown out of work by the pandemic, new research shows those benefits offer a critical boost for the U.S. economy.
