US economy updates
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A big dose of fiscal support for the US economy will be withdrawn this week as more than 7.5m people lose pandemic-era jobless benefits, testing the strength of the economic recovery amid a resurgence of Covid-19.
The expiration of extra federal unemployment payments highlights a shift in America’s policy response to the coronavirus crisis — away from emergency measures to support the labour market in favour of long-term changes to the safety net backed by US President Joe Biden.
But the transition comes at an awkward time for the US economy and the Biden administration, with job growth slowing in August in response to the spike in coronavirus infections tied to the Delta variant, and fears rising of a more protracted slowdown if the pandemic does not abate.
Supporters of the benefits are worried that the withdrawal…