German companies, faced with a shortage of tech workers, are looking at Silicon Valley's thousands of layoffs as an opportunity to find the top talent needed. California's Silicon Valley has been long been the top destination for tech talent. But with the companies like Google, Microsoft and Facebook announcing almost...
World Bank: Recession a Looming Threat for Global Economy
WASHINGTON — The global economy will come “perilously close" to a recession this year, led by weaker growth in all the world's top economies — the United States, Europe and China — the World Bank warned on Tuesday. In an annual report, the World Bank, which lends money to poorer...
Walters: Newsom Budget Spends Windfall on Pandemic Victims
While California’s overall economy is still being battered by the COVID-19 recession and unemployment remains high, its tax revenues have shown amazing resiliency. The recession’s impact has fallen largely on lower-income Californians while those on upper rungs of the socioeconomic ladder, whose taxable incomes are the most important source of...
US Budget Deficit up 25.1% in First 2 Months of Budget Year
WASHINGTON — The U.S. government's deficit in the first two months of the budget year ran 25.1% higher than the same period a year ago as spending to deal with the COVID pandemic soared while tax revenues fell. The Treasury Department reported Thursday that with two months gone in the...
Fed’s Powell: Lack of Further Stimulus Imperils Recovery
WASHINGTON — Strong financial support from the government and the Federal Reserve have spurred a solid recovery from the pandemic recession, but the rebound may falter without further aid, Fed Chair Jerome Powell warned Tuesday. Powell said that government support — including expanded unemployment insurance payments, direct payments to most...
Powell and Mnuchin Voice Optimism but Back More Economic Aid
WASHINGTON — Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin expressed cautious optimism Tuesday that the U.S. economy is rebounding from the pandemic-induced recession with federal support but that more help from the government is likely needed. Powell told the House Financial Services Committee that he believed the...
Walters: California Gambles With Stopgap Legislation
The severe recession that has engulfed California as the state battles the COVID-19 pandemic presents the state’s dominant Democrats with a very large dilemma. As businesses closed their doors and unemployment skyrocketed, the natural inclination of Gov. Gavin Newsom and Democratic legislators was to spend money to relieve the economic...
US Consumer Spending Sinks by Record 13.6% in Face of Virus
WASHINGTON — U.S. consumer spending plunged by a record-shattering 13.6% in April as the viral pandemic shuttered businesses, forced millions of layoffs and sent the economy into a deep recession. Last month's spending decline was far worse than the revised 6.9% drop in March, which itself had set a record...
41 Million Have Lost Jobs Since Virus Hit, but Layoffs Slow
WASHINGTON — Roughly 2.1 million people applied for U.S. unemployment benefits last week, a sign that companies are still slashing jobs in the face of a deep recession even as more businesses reopen and rehire some laid-off employees. About 41 million people have now applied for aid since the virus...
Powell Warns of a Possible Sustained Recession From Pandemic
WASHINGTON — Federal Reserve Chair Jerome Powell warned Wednesday of the threat of a prolonged recession resulting from the viral outbreak and urged Congress and the White House to act further to prevent long-lasting economic damage. The Fed and Congress have taken far-reaching steps to try to counter what is...