Jobless claims in US surged to 965,000 for the week that ended on Saturday, in the biggest surge since March and the highest level since August.

To combat the mounting pressure on Americans, Mr Biden has announced a package which would direct over US$400 billion to the COVID-19 fight by accelerating vaccine deployment with the aim to have most schools up and running within 100 days. The President-elect would also add a further US$350 billion to state and local governments to help with budget shortfalls. 

Moreover, if adopted, Mr Biden’s aid package would tack on US$1,400 to the US$600 in direct payments for individuals that Congress approved most recently.

“We will finish the job of getting a total of US$2,000 in relief to people who need it the most,” Mr Biden told media on Friday. 

“During this pandemic, millions of Americans, through no fault of their own, have lost the dignity and respect that comes with a job and a paycheck,” Mr Biden noted. “There is real pain overwhelming the real economy.”

Biden’s plan also includes extended unemployment benefits for Americans, with a weekly supplement totaling US$400. It would be extended once the current US$300 supplement expires in March and would last through September 2021. 

Another element of Biden’s plan includes increasing the federal minimum wage to US$15 an hour.

“No one working 40 hours a week should live below the poverty line,” he said.

“As I speak, one in seven households in America report they don’t have enough food to eat.

“This includes 30 million adults and as many as 12 million children.”

“There’s no time to waste. We have to act, and we have to act now.”

However, stocks have not responded positively to the government’s latest announcement, with the Dow Jones Industrial Average losing 177.26 points, or 0.6 per cent, closing at 30,814.26. 

The S&P 500 followed, falling 27.29 points, or 0.7 per cent, to 3,768.25 and the Nasdaq Composite dropped 114.14 points, or 0.9 per cent, to 12,998.50.

Friday’s decline cemented a down week for equities, with the Dow down 0.9 per cent, and the S&P and Nasdaq both falling 1.5 per cent.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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