Fed reassurances on inflation, a higher cost projection for the Biden administration’s families plan, an anticipated COVID-19 surge, falling jobless claims, unfilled job openings, and New York migration to Connecticut are among the top business news items this morning.
National
Federal Reserve officials continue to take a measured tone amid concerns of inflation, saying they expect prices to rise during the spring and summer as the economy recovers from the COVID-19 pandemic but that this trend will likely be temporary. The Fed does not anticipate that it will need to make any sudden changes to its longstanding policies of keeping rates low and buying government-backed bonds to help foster economic growth.
The Penn Wharton Budget Model is projecting that President Joe Biden’s families plan would cost $2.5 trillion to implement, $700 billion more than White House projections. The main sources of disagreement involve the costs of tax credits as well as universal pre-kindergarten and two years of free community college access.
The Centers for Disease Control and prevention is anticipating another surge in COVID-19 cases due to the spread of the contagious B.1.1.7 variant as well as relaxing business restrictions. However, the CDC also expects that cases will decline sharply around July as more people get vaccinated.
Jobless claims again fell to a new weekly low, with 498,000 filing initial claims last week. Companies have been ramping up hiring efforts in recent months, although jobless claims remain well above pre-pandemic levels and approximately 16.2 million people were still receiving some sort of benefit for the week ending April 17.
Business trends
Employers in some sectors (including food service, manufacturing, and construction) are struggling to find workers, even as millions of people remain unemployed and in search of work. This trend derives from several trends, including people unwilling to work in jobs that are at higher risk for COVID-19, child care responsibilities, higher unemployment compensation, and lack of necessary skills.
Connecticut
Data from the United States Postal Service suggests that 27,200 people moved from New York City to Connecticut during the pandemic. The news follows a recent Census data indicating that Connecticut’s population has grown slowly since 2010 but remained robust enough to maintain its full congressional representation.
