On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act provided $2.2 trillion to consumers as a spending bridge to get through virus-induced shutdowns that ravaged businesses and employment.

The Act provided taxpayers a one-time direct deposit of up to $1,200 while married couples received $2,400, plus an additional $500 per child. The payments were available for individuals with incomes up to $75,000 and $150,000 for married couples.

To a large extent, the Act seemed to accomplish what was intended. After falling at an annualized 31.4% in the second quarter of 2020, U.S. GDP rebounded with a 33.4% third-quarter increase. The most amazing part of this was that only a portion of the aid to consumers was spent.


About the author

For more information about Janney, please see Janney’s Relationship Summary (Form CRS) on www.janney.com/crs which details all material facts about the scope and terms of our relationship with you and any potential conflicts of interest.

To learn about the professional background, business practices, and conduct of FINRA member firms or their financial professionals, visit FINRA’s BrokerCheck website: http://brokercheck.finra.org/