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US Unemployment Surging
The latest data out of the US last week showed a dramatic surge in unemployment claims. Claims shot higher to 281k from the prior week’s 211k. The figure was well above the 220k figure forecast and paints an alarming picture of the state of the US economy amidst the ongoing coronavirus outbreak.
To put this figure in context, last week’s increase in jobless claims was the largest weekly spike in unemployment since late 2017. With many major cities in the US now on lockdown, these figures are likely to continue increasing over the coming weeks.
This will put further pressure on both the Fed and the government to support the economy.
Fed to Increase Liquidity For Banks & Corporates
Over the weekend, the Fed announced that it will offer a further $1 trillion in overnight loans to banks through to the end of March. This will be in addition to the $1 trillion 14-day loans they offer on a weekly basis.
This is the latest in a series of uniquely aggressive moves fr...
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