Yesterday, September 16, the US Treasury published a report on the results of the first six months of implementing the US bailout plan, revealing that since the law was signed last March, the Tesoro administration has spent nearly $700 billion (out of a total of $1 trillion) in Programs run by the said institution.
These subsidies, as well as other programs implemented as a result of the Covid-19 pandemic, have had their consequences in the economic dynamics. GDP growth increased at an annual rate of 6.3% in real terms in the first quarter of 2021 and 6.6% in the second quarter.
In addition, retail sales rose 0.7% in August, a higher-than-expected rate.
Inflation, for its part, has also reached record levels. In the twelve months through July, the CPI advanced 5.4%, flipping its fourth month above 5%. Which means improving the purchasing power of American families.
“Six months after the approval of the US bailout, our country and economy are in a stronger place,” the agency boasted in a report released Thursday.
The battle is not won
Despite the inflation and GDP data, weekly applications for unemployment benefits in the US increased more than expected in early September, with those not being filed at the end of August due to Hurricane Ida, according to data released yesterday by the Labor Department. .
Between September 5 and 11, 332,000 people registered for unemployment benefits. This is 20,000 more than the previous week.
Delays in supply chains due to the pandemic and natural phenomena have led economists to lower their estimates of third-quarter GDP growth.
Reuters reported that economists at JPMorgan cut their GDP growth forecast to an annual rate of 5.0% from the 7.0% pace. Goldman Sachs lowered its estimate at the start of the month to a rate of 3.5% from 5.25%.
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