COVID-19 Spending to Date Not an Accurate Indicator of Need

  • Economic data out today, while not as bad as forecast, still makes a strong case that the U.S. economic recovery is stalling.

  • The Dallas Federal Reserve’s MEI was slightly lower this week and has remained close to the same level since the end of June, when the reopening rollback began.

  • We believe that if the economy does not receive support in the form of fiscal policy that it could begin to backtrack again.

  • State and local governments have only spent 25% of the $139 billion provided in the CARES Act for COVID relief. We discuss why they have not spent more and why the lack of spending should not be an indicator that they do not need more federal relief.

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