Politico: “The resurgence of the coronavirus is threatening to undercut the U.S. economic recovery and upend Americans’ plans to return to work just as the sweeping social safety net that Congress built during the pandemic is unraveling. That one-two punch – a new wave of cases followed by the looming expiration of enhanced jobless benefits, a ban on evictions and other rescue programs – is sparking concern among lawmakers and economists who say that while widespread business shutdowns are unlikely, renewed fears of the virus alone can slow the economy just as it’s getting back on track. That could dampen hiring and keep some workers on the sidelines of the job market – stalling or even reversing the labor recovery, the centerpiece of President Joe Biden’s economic agenda. New unemployment claims jumped last week to 419,000, well above expectations and the highest since mid-May, the Labor Department reported on Thursday.”
“Biden – whose Gallup approval rating dropped to 50 percent this week, its lowest yet – is already drawing attacks from Republicans over the issue. Rep. Kevin Brady of Texas, the top GOP tax writer in Congress, said the president has focused too much on pushing his ‘$4 trillion spending binge’ and not enough on the virus. Jason Furman, a former top economic adviser to President Barack Obama who is close to the current White House economic team, said the West Wing is very aware of the risks to the economy from the spike in Covid cases. ‘Any problem that has a 5 to 10 percent chance to derail the economic recovery you are looking at very closely and are worried about,’ Furman said. He said that concern isn’t especially high, however, because even under ‘the most plausible worst-case scenario,’ the risk is that the Delta variant ‘takes what was a very fast recovery and turns it into just a fast recovery.'”