Join Delphi Research today and immediately get access to our full Member Portal!
Join Delphi Research today and immediately get access to our full Member Portal!
Back

The Incoming Stimulus “Cliff”

Jul 14, 2020 · 8 min read

By Kevin Kelly, CFA

Key Takeaways

The 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

Upgrade your account to Delphi Insights to unlock full access to this report!

Join Now