Yahoo Finance’s Alexis Christoforous and Sibile Marcellus discuss the economic headwinds President-elect Biden will face.
ALEXIS CHRISTOFOROUS: When a new president enters the White House, we typically talk about what they and their administration might be able to do in their first 100 days. But in light of today's poor December jobs report, some on Wall Street are saying, you know what? Forget the first 100 days. Joe Biden is going to be judged on his first couple of weeks. Yahoo Finance's Sibile Marcellus has been looking into this one for us. She joins us now. Hi, Sibile. So break this down for us.
SIBILE MARCELLUS: Hi, Alexis. So basically, when a new president takes office, we usually give him 100 days to kind of set his agenda and see what he has in store for the country. But Biden will likely not be afforded that luxury because the US economy is in such a dire state. What's adding pressure is the jobs report today, the fact that, for the first time in eight months, the economy lost 140,000 jobs.
The last time we saw a drop in employment was back in April. And that was a very tough month for Americans. We saw a record 20.5 million jobs being lost in a single month, and the unemployment rate was at the highest level it's been during the pandemic. So what economists are saying now is that usually, a president would be judged within the first 100 days. But Biden is going to be judged within a matter of days from taking office.
MUFG's chief economist says that the US economy will slide backwards if that blue wave of fiscal spending doesn't come to the forefront within a matter of days of Biden taking office and if it doesn't materialize within two weeks of Biden's administration.
Now, here's what has been promised by President-Elect Joe Biden. When he was in Georgia before those Senate runoff elections, he promised that if Warnock and Ossoff won and Democrats had a majority in the Senate, then Americans would be getting $2,000 stimulus checks. Now, the election's over, no more campaigning, no more promising. It's really going to come down to Biden actually delivering on what he said he was going to do.
Expectations are very high. Bank of America, for instance, recently said that they expect another infusion of $1 trillion into the US economy. So a lot of pressure there on Biden and his administration within those first couple of days.
ALEXIS CHRISTOFOROUS: For sure. I think we're right. Forget the first 100 days. It's the first couple of days. All right, Sibile Marcellus, thank you.