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Bank of America Says Uneven Recovery in Labor Market Driving Biden's Push for Stimulus Spending, Dovish Behavior by Fed

· 02/05/2021 11:48

04:34 PM EST, 02/05/2021 (MT Newswires) -- Bank of America (BAC) said that uneven recovery among certain demographic groups in the U.S. labor market is driving

the Biden's administration's push for stimulus spending and the Federal Reserve's "dovish" behavior.

Bank of America noted that the most jobs losses have been among lower paid, consumer-facing jobs, where working at home is not a viable option. Job losses have also been more acute in metropolitan areas, where social distancing requirements have been stricter.

Women have experienced greater unemployment and underemployment during the pandemic due to childcare commitments and their tendency to work in the services sector, which has been especially hard hit. Blacks, Asians and Hispanics are also experiencing higher rates of unemployment than whites, the bank said.

"Biden's economic team is unlikely to break out the champagne over reaching full employment if it isn't evident across income and racial groups; they will continue to press ahead with economic stimulus until there is broad-based improvement. This also holds for the Federal Reserve," the analysts wrote in their note.

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