CNBC Economy

Eric Rosengren, president of the Federal Reserve Bank of Boston, told CNBC the next six months will be "pretty choppy" despite covid vaccine news.

The U.S. economy can't depend on a coronavirus vaccine to "solve all our problems," said Carl Tannenbaum, chief economist at Northern Trust.

Fed Chairman Jerome Powell is likely to reiterate the need for fiscal stimulus to help the economy recover.

CNBC studied the net change in employment by industry for October based on data from the Labor Department.

The unemployment rate continues to fall, but the share of unemployed out of work for at least six months is rapidly accelerating.

Nonfarm payrolls increased by 638,000 in October and the unemployment rate fell to 6.9%, both much better than expected.

The labor market was stronger than expected in October, showing good momentum ahead of the latest wave of coronavirus cases.

"We are suffering a very significant reintensification of the virus ... that's going to start doing some damage," said Mark Zandi of Moody's Analytics.

Job growth was expected to total 530,000 in October, and the unemployment rate is expected to fall to 7.7%, according to Dow Jones.

"Economic activity and employment have continued to recover but remain well below their levels at the beginning of the year," the statement said.

The Labor Department reported that 751,000 U.S. workers filed for benefits versus 758,000 the previous week.

The likelihood that the Senate will stay in Republican hands likely translates into a smaller pandemic aid package.

The U.S. may need several hundred billion dollars a month in "disaster relief," Nobel prize-winning economist Paul Krugman said.

Companies added 365,000 positions for the month, according to ADP, well below the 600,000 estimate from a Dow Jones economist survey.

The Fed said it is reducing the minimum loan size to $100,000 and will ease restrictions on the debt load for companies.

While no Fed official would ever acknowledge that monetary policy ammunition is running low, there appear to be few weapons left in its arsenal.

The growth came after a 31.4% plunge in the second quarter and was better than the 32% estimate from economists surveyed by Dow Jones

Potential homebuyers may be hitting the limit of what they can afford. Pending home sales fell 2.2% in September compared with August.

The number of first-time unemployment claims declined for a second straight week — to the lowest level since Covid shutdowns began in March.

Third quarter GDP is expected to grow at a sharp pace, but the economy is still behind where it was and may be challenged by a lack of stimulus.