2020 Q3 Economic Recap and Rate Outlook
The third quarter was one for the record books as $3 trillion in CARES Act dollars invigorated consumers and allowed millions of floundering businesses to reopen. Third quarter GDP growth, although not scheduled for release until the end of October, will certainly be epic in scale. The gradual awakening of the economy in the summer months untied pent-up demand, allowing Americans to vacation and continue shopping sprees that began in May with an unusually high capacity to spend. The Commerce Department reported that U.S. personal income through July, had risen +4.9% above pre-pandemic levels as government transfer payments more than offset lost wages.