April 2020 Economic Recap
Congress passed a $484 billion refunding of the PPP program, intended to aid small businesses. Of the $484 billion bill, $310 billion was allocated directly to the Paycheck Protection Program, which ran out its initial $350 billion allocation earlier in the month. Of this $310 billion, $60 billion was allocated to small and midsize community lenders to address the concern that loans from the Protection Program were taken by larger businesses with stronger relationships with banks. Additionally, $75 billion was been set aside for hospitals, $25 billion for COVID-19 testing, and $60 billion for economic injury disaster loans and grants.
U.S. oil futures went negative for the first time during April, reflecting limited available capacity for crude storage. The price of WTI crude to be delivered in May fell to negative $37.63 at the end of the day before the contract was set to expire. June contract prices also fell some 18% over the same period, though they have recovered to the mid-$20 range since then. Longer dated oil futures indicate the market expects some pick-up in oil prices as we move through the pandemic.
For a deeper consideration of the economic data released during April, please follow the links below: