Without the additional $600-a-week payment in unemployment benefits, economists expect a sharp drop-off in household spending and a setback for the U.S. economy’s near-term recovery
WASHINGTON—Many economists expect last week’s expiration of $600 in enhanced weekly unemployment benefits to lead to a sharp drop-off in household spending and a setback for the U.S. economy’s near-term recovery, even if the lapse turns out to be temporary.
The federal government was providing billions of dollars a week in extra jobless payments to workers—more than 12 million people in mid-July, the Labor Department said. The program, approved as part of a coronavirus aid package, expired at the end of July, and Congress...
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