Millions of Americans face a cash cliff this summer as emergency unemployment benefits instituted by the CARES Act — which lifted U.S. consumer incomes by a record 10.8 percent in April — expire, Reuters reported. The loss of that safety net looms in the weeks ahead, well before a sustained recovery is likely to take hold from the sudden and deep recession brought on by the novel coronavirus. Personal income dropped 4.2 percent in May, data Friday showed. The $600 supplement Congress added to weekly unemployment benefits is due to expire on July 31. Without new support, recipients face a substantial loss of income — particularly devastating for those who worked in hard-hit sectors like hospitality where new jobs are scarce. During high unemployment and a still-raging pandemic, the end of enhanced jobless benefits could drag on consumer spending, set off a wave of missed rent and mortgage payments and translate to a slower recovery, economists said.
