As Central Banks Eye Recovery, Millions Lose Healthcare
July 11, 2017
The Federal Reserve, the Bank of Canada, and the European Central Bank all see growth going forward. This is matched by economic news showing that Black and Hispanic Americans are seeing historically low unemployment on the horizon. Unfortunately, 2 million more Americans are uninsured this year, compared to last year.
- Number of uninsured adults in U.S rose by 2 million this year. A new survey reports that the number of adults who have health insurance coverage dropped by around 2 million this year. The Gallup-Sharecare Well-Being Index released today reported that during the second quarter of 2017, from months April to June, the uninsured rate for U.S adults was 11.7%. This represents a 0.8% increase in the number of uninsured adults, from the record low of 10.9% at the end of 2016. Analysts note that despite the small percentage, the increase is statistically significant. The survey also indicated that younger adults and individuals who purchased health insurance policies on their own make up the majority of the 2 million that ceased to have coverage. Analysis conducted by the Congressional Budget Office found that around 22 million more people would be projected to be uninsured under the new GOP plan. [The Hill]
Economic Indicators & News
- Decrease in unemployment rate for Hispanic and black workers. With better wage growth and labor-force participation, the U.S. is seeing a decrease in unemployment rates. Last month the unemployment rate for Hispanic or Latino workers fell to 4.8% – a record low. The unemployment rate for black Americans similarly decreased to 7.1%, only 0.1% above the record low. Despite this improvement, the June lows are still higher than the 3.8% rate for whites and higher than the overall unemployment rate of 4.4%. [WSJ]
- Bank of Canada rate hike shows Alberta’s slight recovery. The rise in the interest rate hints to a slight rebound of Alberta’s economy as it recovers from falling oil prices. As Alberta is Canada’s main oil-producing province, the Bank of Canada is predicted to hike up interest rates further as early as this Wednesday. Although Alberta is showing potential to have the strongest provincial growth and is climbing slowly out of the recession, employment levels in Alberta are still down, including a decrease of 96,300 jobs in goods production. [Bloomberg]
- The Fed and ECB both consider exiting stimulus programs. After years of extraordinary economic stimulus from the European Central Bank, it seems that recent selloffs signal the winding down of stimulus programs. ECB President Mario Draghi states that it will slowly stop expanding its bond portfolio. However, the U.S Federal Reserve is still further along in scaling back expansionary policy in terms of raising short-term interest rates and shrinking its bond portfolio while ECB interest rates are still negative and its bond portfolio still expanding. Nevertheless, positive repercussions are felt as the contractionary actions of the ECB aid in boosting U.S. 10-year Treasury yields by around 0.25 percentage points. [WSJ]