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| Retail Sales Rise by 17.7 Percent | Retail Sales Rise by 17.7 Percent |
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| This briefing is no longer updating. The latest developments can be found here. | This briefing is no longer updating. The latest developments can be found here. |
| Jerome H. Powell, chair of the Federal Reserve, told lawmakers on Tuesday that the path to economic recovery remained uncertain and warned that a prolonged downturn could widen existing inequalities. | Jerome H. Powell, chair of the Federal Reserve, told lawmakers on Tuesday that the path to economic recovery remained uncertain and warned that a prolonged downturn could widen existing inequalities. |
| Some parts of the economy are seeing a modest rebound, but “levels of output and employment remain far below their pre-pandemic levels, and significant uncertainty remains about the timing and strength of the recovery,” Mr. Powell said in testimony before the Senate Banking Committee. | Some parts of the economy are seeing a modest rebound, but “levels of output and employment remain far below their pre-pandemic levels, and significant uncertainty remains about the timing and strength of the recovery,” Mr. Powell said in testimony before the Senate Banking Committee. |
| Mr. Powell stressed that the damage could be long-lasting if the pandemic dragged on, particularly for lower-income workers. | Mr. Powell stressed that the damage could be long-lasting if the pandemic dragged on, particularly for lower-income workers. |
| “Low-income households have experienced, by far, the sharpest drop in employment, while job losses of African-Americans, Hispanics and women have been greater than that of other groups,” Mr. Powell said. “If not contained and reversed, the downturn could further widen gaps in economic well-being that the long expansion had made some progress in closing.” | “Low-income households have experienced, by far, the sharpest drop in employment, while job losses of African-Americans, Hispanics and women have been greater than that of other groups,” Mr. Powell said. “If not contained and reversed, the downturn could further widen gaps in economic well-being that the long expansion had made some progress in closing.” |
| Mr. Powell’s remarks, part of his two-day semiannual testimony before Senate and House lawmakers, come as communities across the United States continue to protest systemic racial inequality after a black man’s death at the hands of the police in Minneapolis in late May. Black Americans are often at a stark disadvantage in the labor market, and along with other minority groups, they have been hard hit by pandemic-era job losses. | Mr. Powell’s remarks, part of his two-day semiannual testimony before Senate and House lawmakers, come as communities across the United States continue to protest systemic racial inequality after a black man’s death at the hands of the police in Minneapolis in late May. Black Americans are often at a stark disadvantage in the labor market, and along with other minority groups, they have been hard hit by pandemic-era job losses. |
| The Fed chair told lawmakers that a full economic recovery was unlikely until the public was confident that the disease was contained. | The Fed chair told lawmakers that a full economic recovery was unlikely until the public was confident that the disease was contained. |
| Wall Street’s roller coaster continued on Tuesday, as investors cheered a surprisingly strong rise in retail sales and a progress on a potential treatment for Covid-19, while shrugging off reports of new cases of the virus in the United States and stricter measures in China to clamp down on a fresh outbreak. | Wall Street’s roller coaster continued on Tuesday, as investors cheered a surprisingly strong rise in retail sales and a progress on a potential treatment for Covid-19, while shrugging off reports of new cases of the virus in the United States and stricter measures in China to clamp down on a fresh outbreak. |
| The S&P 500 rose nearly 2 percent, led by sectors that are sensitive to the short-term outlook for the economy such as industrial and energy stocks. Energy was the best-performing part of the market, as benchmark American crude rose more than 3 percent. | The S&P 500 rose nearly 2 percent, led by sectors that are sensitive to the short-term outlook for the economy such as industrial and energy stocks. Energy was the best-performing part of the market, as benchmark American crude rose more than 3 percent. |
| Hopes for a strong economic rebound were buoyed by a report showing retail sales jumped 18 percent in May, a stronger than expected bounce. It was the biggest jump on record and helped repair much of the damage from the previous month, which showed the largest-ever monthly collapse in retail sales. | Hopes for a strong economic rebound were buoyed by a report showing retail sales jumped 18 percent in May, a stronger than expected bounce. It was the biggest jump on record and helped repair much of the damage from the previous month, which showed the largest-ever monthly collapse in retail sales. |
| “That allows the bulls to continue the narrative of a V-shaped recovery,” said Randy Watts, chief investment officer at the investment firm O’Neil Global Advisors. | “That allows the bulls to continue the narrative of a V-shaped recovery,” said Randy Watts, chief investment officer at the investment firm O’Neil Global Advisors. |
| Specialty retailers like Nordstrom, Kohl’s, Gap and L Brands rose sharply, as did home improvement retailers Home Depot and Lowe’s. | Specialty retailers like Nordstrom, Kohl’s, Gap and L Brands rose sharply, as did home improvement retailers Home Depot and Lowe’s. |
| Investors were also heartened by news that scientists at the University of Oxford said on Tuesday that a 6,000-patient trial in Britain showed that a low-cost steroid, dexamethasone, could reduce deaths significantly for hospitalized Covid-19 patients. That optimism helped lift share prices for companies in industries especially exposed to the virus. Airlines, cruise lines and casino companies rose. | Investors were also heartened by news that scientists at the University of Oxford said on Tuesday that a 6,000-patient trial in Britain showed that a low-cost steroid, dexamethasone, could reduce deaths significantly for hospitalized Covid-19 patients. That optimism helped lift share prices for companies in industries especially exposed to the virus. Airlines, cruise lines and casino companies rose. |
| Other reports indicated that government support for the economy and markets, a crucial cornerstone of the stock market’s monthslong rally, is likely to continue. | Other reports indicated that government support for the economy and markets, a crucial cornerstone of the stock market’s monthslong rally, is likely to continue. |
| Bloomberg News reported that the Trump administration was considering $1 trillion in infrastructure spending to help the economy rebound. Shares rose for infrastructure-related companies such as Caterpillar, the asphalt maker Vulcan Materials and Martin Marietta Materials, a producer of crushed stone. | Bloomberg News reported that the Trump administration was considering $1 trillion in infrastructure spending to help the economy rebound. Shares rose for infrastructure-related companies such as Caterpillar, the asphalt maker Vulcan Materials and Martin Marietta Materials, a producer of crushed stone. |
| Mr. Watts said he was skeptical that such a bill would become law before the presidential election in November. But the market found it reassuring. | Mr. Watts said he was skeptical that such a bill would become law before the presidential election in November. But the market found it reassuring. |
| “It sends a message to investors that there’s more fiscal stimulus coming,” he said. | “It sends a message to investors that there’s more fiscal stimulus coming,” he said. |
| Government support in the form of monetary policy from the Federal Reserve also seems set to continue. On Monday, the Federal Reserve’s announcement that it would start to buy corporate debt issued by individual firms gave stocks a lift. | Government support in the form of monetary policy from the Federal Reserve also seems set to continue. On Monday, the Federal Reserve’s announcement that it would start to buy corporate debt issued by individual firms gave stocks a lift. |
| The Fed chair, Jerome H. Powell, said in testimony to lawmakers on Tuesday that the corporate bond market had calmed considerably, but the central bank must follow through on its prior announcements. | The Fed chair, Jerome H. Powell, said in testimony to lawmakers on Tuesday that the corporate bond market had calmed considerably, but the central bank must follow through on its prior announcements. |
| “We just want to be there if things turn bad in the economy or if things go in a negative direction,” Mr. Powell said. | “We just want to be there if things turn bad in the economy or if things go in a negative direction,” Mr. Powell said. |
| As restaurants around the country look to reopen during the coronavirus pandemic, outdoor seating is becoming a survival option, and local governments are helping by cutting red tape. | As restaurants around the country look to reopen during the coronavirus pandemic, outdoor seating is becoming a survival option, and local governments are helping by cutting red tape. |
| With the spread of the coronavirus still a danger, many states are requiring that restaurants reduce their capacity to 25 to 50 percent of normal operations to ensure there is at least six feet between tables. Some, like New Jersey, are prohibiting indoor dining altogether for the time being. | With the spread of the coronavirus still a danger, many states are requiring that restaurants reduce their capacity to 25 to 50 percent of normal operations to ensure there is at least six feet between tables. Some, like New Jersey, are prohibiting indoor dining altogether for the time being. |
| However, local officials are trying to give at least some of that capacity back by allowing eating establishments to expand onto patios and parking lots, and even city sidewalks and streets. And they are reducing or waiving fees and quickly approving plans that previously may have taken months to process. | However, local officials are trying to give at least some of that capacity back by allowing eating establishments to expand onto patios and parking lots, and even city sidewalks and streets. And they are reducing or waiving fees and quickly approving plans that previously may have taken months to process. |
| The effort appears to be paying off. OpenTable, a provider of online restaurant reservations, has counted a tenfold increase in outdoor seating this spring compared with a year ago. | The effort appears to be paying off. OpenTable, a provider of online restaurant reservations, has counted a tenfold increase in outdoor seating this spring compared with a year ago. |
| Libby Francola had just split with her boyfriend, reaching the end of her first serious relationship in five years. “I was not in a good place mentally, and coronavirus made it even harder,” Ms. Francola, 32, said. “I felt like I just didn’t have anyone to talk to about anything.” | Libby Francola had just split with her boyfriend, reaching the end of her first serious relationship in five years. “I was not in a good place mentally, and coronavirus made it even harder,” Ms. Francola, 32, said. “I felt like I just didn’t have anyone to talk to about anything.” |
| Sitting alone in her bedroom, she stumbled onto an internet video describing a smartphone app called Replika. The app’s sole purpose, the video said, is to be her friend. | Sitting alone in her bedroom, she stumbled onto an internet video describing a smartphone app called Replika. The app’s sole purpose, the video said, is to be her friend. |
| The app was free, and it offered what she needed most: conversation. She spent the day chatting with the app via text messages — mostly about her problems, hopes and anxieties. The next day, she paid an $8 monthly fee so she could actually talk with it, as if she were chatting with someone on the telephone. | The app was free, and it offered what she needed most: conversation. She spent the day chatting with the app via text messages — mostly about her problems, hopes and anxieties. The next day, she paid an $8 monthly fee so she could actually talk with it, as if she were chatting with someone on the telephone. |
| In April, at the height of the coronavirus pandemic, half a million people downloaded Replika — the largest monthly gain in its three-year history. Traffic to the app nearly doubled. People were hungry for companionship, and the technology was improving, inching the world closer to the human-meets-machine relationships portrayed in science-fiction films like “Her” and “A.I. Artificial Intelligence.” | In April, at the height of the coronavirus pandemic, half a million people downloaded Replika — the largest monthly gain in its three-year history. Traffic to the app nearly doubled. People were hungry for companionship, and the technology was improving, inching the world closer to the human-meets-machine relationships portrayed in science-fiction films like “Her” and “A.I. Artificial Intelligence.” |
| Replika is not exactly a perfect conversationalist. It often repeats itself. Sometimes it spouts nonsense. When you talk to it, as Ms Francola does, it sounds like a machine. | Replika is not exactly a perfect conversationalist. It often repeats itself. Sometimes it spouts nonsense. When you talk to it, as Ms Francola does, it sounds like a machine. |
| But Ms. Francola said the more she used Replika, the more human it seemed. | But Ms. Francola said the more she used Replika, the more human it seemed. |
| Some Replika users said the chatbot, built by Luka, a tiny California start-up, provided a little comfort as the pandemic separated them from so many friends and colleagues. But some researchers who study people who interact with technology said it was a cause for concern. | Some Replika users said the chatbot, built by Luka, a tiny California start-up, provided a little comfort as the pandemic separated them from so many friends and colleagues. But some researchers who study people who interact with technology said it was a cause for concern. |
| “We are all spending so much time behind our screens, it is not surprising that when we get a chance to talk to a machine, we take it,” said Sherry Turkle, a professor of the social studies of science and technology at the Massachusetts Institute of Technology. “But this does not develop the muscles — the emotional muscles — needed to have real dialogue with real people.” | “We are all spending so much time behind our screens, it is not surprising that when we get a chance to talk to a machine, we take it,” said Sherry Turkle, a professor of the social studies of science and technology at the Massachusetts Institute of Technology. “But this does not develop the muscles — the emotional muscles — needed to have real dialogue with real people.” |
| National retail sales rebounded in May as thousands of stores and restaurants reopened after lockdowns were lifted and federal stimulus checks and tax refunds fueled a burst of spending. But many of the stores and restaurants that welcomed back customers last month did so with fewer employees, reflecting a permanently altered retail landscape and an ominous sign for the economy as businesses try to recover from the coronavirus pandemic. | National retail sales rebounded in May as thousands of stores and restaurants reopened after lockdowns were lifted and federal stimulus checks and tax refunds fueled a burst of spending. But many of the stores and restaurants that welcomed back customers last month did so with fewer employees, reflecting a permanently altered retail landscape and an ominous sign for the economy as businesses try to recover from the coronavirus pandemic. |
| Total sales, which include purchases in stores and online as well as money spent at bars and restaurants, rose 17.7 percent in May from the previous month, the Commerce Department said Tuesday. That followed a 14.7 percent drop in April, the largest monthly decline in nearly three decades of record-keeping, and an 8.3 percent decline in March. | Total sales, which include purchases in stores and online as well as money spent at bars and restaurants, rose 17.7 percent in May from the previous month, the Commerce Department said Tuesday. That followed a 14.7 percent drop in April, the largest monthly decline in nearly three decades of record-keeping, and an 8.3 percent decline in March. |
| Economists had expected a bounce back from April, when widespread business closures drove retail sales to their lowest level since 2013. | Economists had expected a bounce back from April, when widespread business closures drove retail sales to their lowest level since 2013. |
| Updated June 16, 2020 | Updated June 16, 2020 |
| The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth. | |
| The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. | The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. |
| So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. | So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. |
| Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. | Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. |
| A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. | A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. |
| The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. | The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. |
| Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. | Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. |
| States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. | States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. |
| Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. | Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. |
| If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) | If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) |
| Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. | Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. |
| The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. | The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. |
| If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. | If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. |
| If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. | If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. |
| The rise in May is the largest monthly surge on record — drawing a celebratory Twitter post from President Trump — but the retail industry is nowhere near back to normal. Overall sales were still down 8 percent from February. Some categories, like clothing, were down as much as 63 percent from a year ago. | The rise in May is the largest monthly surge on record — drawing a celebratory Twitter post from President Trump — but the retail industry is nowhere near back to normal. Overall sales were still down 8 percent from February. Some categories, like clothing, were down as much as 63 percent from a year ago. |
| After more than a month of quarantine, May brought a tentative restart of brick-and-mortar retail across most of the country, with major chains like Macy’s and Gap reopening hundreds of stores. Some restaurants that had either closed or shifted their business to delivery and curbside pickup also reopened for in-person dining. | After more than a month of quarantine, May brought a tentative restart of brick-and-mortar retail across most of the country, with major chains like Macy’s and Gap reopening hundreds of stores. Some restaurants that had either closed or shifted their business to delivery and curbside pickup also reopened for in-person dining. |
| Driving some of the sales gains was warm weather, a sense of relief after weeks cooped up at home and optimism from some that the worst of the pandemic could be over. But they were also lifted by stimulus money — $1,200 per recipient, plus $500 per child — that will run out in the coming months, with no indications that Congress intends to pass another round of assistance. | Driving some of the sales gains was warm weather, a sense of relief after weeks cooped up at home and optimism from some that the worst of the pandemic could be over. But they were also lifted by stimulus money — $1,200 per recipient, plus $500 per child — that will run out in the coming months, with no indications that Congress intends to pass another round of assistance. |
| “I think a lot of it is lockdown fatigue,” said Beth Ann Bovino, chief U.S. economist at S&P Global. “I would caution not to be fooled by this large gain. We still have a long way to go in repairing the economy.” | “I think a lot of it is lockdown fatigue,” said Beth Ann Bovino, chief U.S. economist at S&P Global. “I would caution not to be fooled by this large gain. We still have a long way to go in repairing the economy.” |
| Interest rate increases could be on hold for an extended period as central bankers try to coax inflation back after a pandemic-spurred slowdown, a Federal Reserve official is expected to signal in a speech on Tuesday night. | Interest rate increases could be on hold for an extended period as central bankers try to coax inflation back after a pandemic-spurred slowdown, a Federal Reserve official is expected to signal in a speech on Tuesday night. |
| Comments made by the Federal Reserve’s vice chair, Richard Clarida, in a prerecorded video to the Foreign Policy Association reinforce the central bank’s projections last week that suggested most policymakers expect to leave the federal funds rate at near-zero for years. | Comments made by the Federal Reserve’s vice chair, Richard Clarida, in a prerecorded video to the Foreign Policy Association reinforce the central bank’s projections last week that suggested most policymakers expect to leave the federal funds rate at near-zero for years. |
| Inflation expectations, which help to guide future price gains, are “at risk of falling” too low for comfort, Mr. Clarida is expected to say, citing “the likely depth of this downturn” as the cause. | Inflation expectations, which help to guide future price gains, are “at risk of falling” too low for comfort, Mr. Clarida is expected to say, citing “the likely depth of this downturn” as the cause. |
| A weaker outlook for inflation could be bad news for the Fed, which aims for a 2 percent annual inflation rate. The Fed tries to encourage a little bit of inflation, which leaves central bankers with more room to cut interest rates and provides a buffer to guard against price declines that could damage the economy. | A weaker outlook for inflation could be bad news for the Fed, which aims for a 2 percent annual inflation rate. The Fed tries to encourage a little bit of inflation, which leaves central bankers with more room to cut interest rates and provides a buffer to guard against price declines that could damage the economy. |
| “To me, price stability requires that inflation expectations remain well anchored at our 2 percent objective,” Mr. Clarida will say in his remarks. “I will place a high priority on advocating policies that will be directed at achieving not only maximum employment, but also well-anchored inflation expectations consistent with our 2 percent objective.” | “To me, price stability requires that inflation expectations remain well anchored at our 2 percent objective,” Mr. Clarida will say in his remarks. “I will place a high priority on advocating policies that will be directed at achieving not only maximum employment, but also well-anchored inflation expectations consistent with our 2 percent objective.” |
| The International Energy Agency forecast Tuesday that demand for oil, which has been slammed by the coronavirus pandemic, would rebound by a record amount next year but would still remain below 2019 levels largely because of what it called “an existential crisis” in commercial aviation. | The International Energy Agency forecast Tuesday that demand for oil, which has been slammed by the coronavirus pandemic, would rebound by a record amount next year but would still remain below 2019 levels largely because of what it called “an existential crisis” in commercial aviation. |
| Demand, especially among large oil importers like China and India, is already recovering rapidly from the April lows, said the group, which is based in Paris. The agency forecast that demand will increase by 5.7 million barrels a day in 2021, but even this growth would not be enough for consumption to recover from the drop of 8.2 million barrels a day expected for 2020. | Demand, especially among large oil importers like China and India, is already recovering rapidly from the April lows, said the group, which is based in Paris. The agency forecast that demand will increase by 5.7 million barrels a day in 2021, but even this growth would not be enough for consumption to recover from the drop of 8.2 million barrels a day expected for 2020. |
| Most of the lingering shortfall is likely to be in aviation fuel, the group said, as travel restrictions intended to prevent the spread of the virus weigh heavily on long-distance flying. | Most of the lingering shortfall is likely to be in aviation fuel, the group said, as travel restrictions intended to prevent the spread of the virus weigh heavily on long-distance flying. |
| The agency said in its Monthly Oil Report, published Tuesday, that the aviation recovery could depend on the discovery and dissemination of a vaccine for the virus, which it said might require another 12 to 18 months. | The agency said in its Monthly Oil Report, published Tuesday, that the aviation recovery could depend on the discovery and dissemination of a vaccine for the virus, which it said might require another 12 to 18 months. |
| Over all, the agency’s analysis seemed to support the recovery in oil prices from their April lows. In the agency’s view, demand for oil may exceed output by the third quarter of this year if deep cuts by the Organization of the Petroleum Exporting Countries and Russia and well shutdowns in countries like the United States persist. | Over all, the agency’s analysis seemed to support the recovery in oil prices from their April lows. In the agency’s view, demand for oil may exceed output by the third quarter of this year if deep cuts by the Organization of the Petroleum Exporting Countries and Russia and well shutdowns in countries like the United States persist. |
| The fitness chain 24 Hour Fitness filed for Chapter 11 bankruptcy protection on Monday, after the coronavirus pandemic forced its clubs to shut for nearly two months. And Town Sports International, which owns about 200 gyms including New York Sports Club and Boston Sports Club, said that it was considering bankruptcy because of revenue losses as a result of the shutdown. | The fitness chain 24 Hour Fitness filed for Chapter 11 bankruptcy protection on Monday, after the coronavirus pandemic forced its clubs to shut for nearly two months. And Town Sports International, which owns about 200 gyms including New York Sports Club and Boston Sports Club, said that it was considering bankruptcy because of revenue losses as a result of the shutdown. |
| British employment data released Tuesday showed a sharp decline in the number of people on payrolls, but the overall unemployment rate for the February-March period remained steady, at 3.9 percent, as the country’s furlough program kept many people off the jobless rolls. Over 600,000 jobs were shed from payrolls from March to May, a 2.1 percent decline an the first drop after years of steady growth. | British employment data released Tuesday showed a sharp decline in the number of people on payrolls, but the overall unemployment rate for the February-March period remained steady, at 3.9 percent, as the country’s furlough program kept many people off the jobless rolls. Over 600,000 jobs were shed from payrolls from March to May, a 2.1 percent decline an the first drop after years of steady growth. |
| The Academy of Motion Picture Arts and Sciences said on Monday that it would push back the next Oscars ceremony to April 25 from Feb. 28, citing the coronavirus pandemic. The postponement, the fourth since the Academy Awards were introduced in 1929, could prompt the Golden Globes and other entertainment award shows to recalibrate. | The Academy of Motion Picture Arts and Sciences said on Monday that it would push back the next Oscars ceremony to April 25 from Feb. 28, citing the coronavirus pandemic. The postponement, the fourth since the Academy Awards were introduced in 1929, could prompt the Golden Globes and other entertainment award shows to recalibrate. |
| Reporting was contributed by Cade Metz, Jeanna Smialek, Sapna Maheshwari, Michael Corkery, Stanley Reed, Mohammed Hadi, Niraj Chokshi, David Yaffe-Bellany, Gillian Friedman, Carlos Tejada and Brooks Barnes. | Reporting was contributed by Cade Metz, Jeanna Smialek, Sapna Maheshwari, Michael Corkery, Stanley Reed, Mohammed Hadi, Niraj Chokshi, David Yaffe-Bellany, Gillian Friedman, Carlos Tejada and Brooks Barnes. |