Key TakeawaysThe U.S. federal budget deficit totaled $864 billion in June, the largest monthly reading in history. A vast majority of PPP loan recipients surveyed by Goldman Sachs will exhaust their funding by the first week of August while Chapter 11 bankruptcy filings and business closures accelerate. A handful of key programs are set to expire at the end of July, most notably the extra $600 a week in federal unemployment benefits unless Congress approves an extension. With U.S. equity benchmarks at or near all-time highs, another major round of fiscal spending is arguably already priced in, so any disappointment regarding the size of the stimulus package could weigh on risk assets.
It’s official: June marked the largest monthly budget deficit in U.S. history ($864 billion) as spending to combat the fallout from COVID-19 breached $1.1 trillion. Last month’s record outlays pushed the deficit to $2.7 trillion for the first half of 2020 on the back of $5