Barkin Hopeful Jobless Claims Could Further Decline

President of the Federal Reserve Bank of Richmond, Thomas Barkin, has expressed his hopes that jobless claims will continue to decline.

Recently, Reuters quoted Barkin as saying that the US economy faces the risk of a larger downturn than previously expected if congress does not provide the needed support through another stimulus package.

“Four months ago, when we did the first stimulus, we thought the economy faced a pothole and the stimulus put a plate over it so we could navigate. Now escalation of the virus may be making that pothole into a sinkhole and creating a need for a longer plate.”

“If Congress takes support away too abruptly, the unemployed, their landlords, the places they shop will then feel the full brunt.”

Last week, jobless claims recorded 1.186 million, compared with 1.435 million in the previous week.