While the holiday season should be spent in cheer and delight, we can’t deny that there’s a lot of uncertainty looming around the current global situation and how the coronavirus pandemic affects lives across the world. Of course, while progress has been made both economically and addressing the health risk everywhere, we have yet to escape its grasp.
In fact, a new strain of the coronavirus has been identified in the United Kingdom, forcing authorities to set a strict lockdown and prevent the spread of this new strain as much as possible. Evidently, we still need to exercise safety and caution this Christmas season. To do our part in providing information, today we’ll be taking a quick outlook on what to expect this 2021.
We’re Getting Another Stimulus Package
In recent events, we can expect another round of the long-awaited stimulus package to come by as soon as next week arrives because Congress just passed a Covid-19 relief bill. All we’re waiting for now is for President Donald Trump to sign, and as seen with his vocal support for the stimulus package on Twitter, urging to give more direct payments, we hope to see this come into effect very soon.
Compared to the first stimulus check of $1200, this current package tops out at $600 for every eligible adult, which is half of what we got in the first package. There will also be a $300 weekly boost for 11 weeks until March 13 to help those affected by unemployment.
Will It Be Enough?
While it may seem like a good amount of extra money that will go into paying bills and living expenses, for those extremely affected by the pandemic, such as those without jobs and livelihood, the amount will barely be enough to get by. This is without considering the different costs of living in various states, which means some households will have it much harder than the rest.
We strongly urge everyone to be frugal with their stimulus checks and ensure that their budgets should always account for their necessities first. Emergency savings will also be of great help, so set aside a small amount whenever possible to keep your financial situation afloat.
Understanding The Current Economic Situation
As for the current economic situation, the Federal Reserve recently issued its FOMC statement last 16th of December, focusing on maximizing employment and achieving price stability in the foreseeable future. While economic activity has been slow and is still below the beginning of the year, economic projections are hopeful and point towards steady recovery going into 2021, 2022, and 2023.
However, there’s still a level of uncertainty and risk, and any new variable introduced in 2021 can impact the economic outcomes presented in the FOMC statement. So, take these statistics and information with a grain of salt as they are assumptions on current monetary policy. Individual assessments can change over time, and we have yet to fully recover from the decline at the start of 2020.
What About The Housing Market?
As of now, there are two sides to the housing market, those optimistic and speculate the prices to go higher and improve, and those expecting a potential wave of foreclosures to comes this 2021. There are strong points to each side, whereas the low volume of houses sold in the market leads to an increase in prices and the worrying K-shaped recovery that the market is showing.
In terms of advice, we urge everyone to meet their mortgage payments to avoid any potential problems. Much of the real estate situation is still up in the air, so there’s no telling which way the market can go.
Be Hopeful But Stay Vigilant
Overall, while we encourage everyone to be hopeful for this new year, we must remind ourselves to stay vigilant and prepared. Uncertainty is difficult to factor, so it’s much safer for all of us if we exercise caution as we welcome 2021.