JPMorgan Providing the Biden Administration With COVID Recovery Recommendations
JPMorgan Chase sent over recommendations for President-elect Joe Biden to prevent economic fallout post-COVID, according to CNBC.
The first recommendation was to pass another round of direct payments and extending unemployment benefits, according to the document. According to the head of JPMorgan's policy group, Heather Higginbottom, if these measures are not passed and implemented it could lead to economic fallout in the coming months.
“We see how real households are weathering this, and can project that if they don’t have additional savings and income, they’re going to be in dire straits,” Higginbottom said. “We have a cliff of a bunch of programs that will expire at the end of the year. There are families relying on those payments, and many of them will be food insecure. We’ll see a lot of families feeling a lot of economic pain.”
Higginbottom is also a former Obama administration official. The document was first shared with the Biden transition team last week. The document also contained customer data that shows support for extending unemployment benefits among other measures as coronavirus cases surge globally. “There is concrete evidence that these expanded unemployment insurance payments have had a stimulative effect on the economy and will help individual families,” Higginbottom said. “They’ll spend that money and help the economy.”
Lawmakers have been actively trying to pass a skinnier stimulus bill. Biden hopes to expand on the offerings once he takes office in January. Higginbottom also identified structural issues that have become apparent amid the pandemic. She stated that minorities and women have been disproportionately affected due to job losses being severely concentrated in service industries.
The document also contained ideas to increase household savings, changes to retirement accounts that would allow for emergency savings, and baby bonds to help fund education expenses.
“Historically, when we’ve had an economic hit and recovered from it, it has left certain communities further behind,” Higginbottom said. “With the real disproportionate impact on communities of color, low-wage workers and women who are pushed into caregiving roles, we’re at risk of exacerbating these gaps if we don’t address some fundamental issues.”