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Fed Report To Congress Says Enhanced Federal Unemployment Handouts Are Restricting Growth

By Ben Zeisloft

In its semiannual report to Congress, the Federal Reserve pointed to enhanced federal unemployment insurance as a factor restricting economic growth.

Despite a return to normalcy in the United States following COVID-19 and the lockdown-induced recession, several analyses reveal that a nationwide shortage of available labor is dampening the recovery. The problem is especially acute in Democrat-run states that have not opted out of the $300-per-week federal unemployment supplements, which are set to automatically expire on September 6.

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