U.S. economy shows more signs of strength

New jobless benefits claims fell last week by 13,000 to just over 550,000—the lowest level since the start of the pandemic. The government said Thursday that the economy grew last quarter at a vigorous 6.4 percent annual rate.

What’s next? As more American companies return to business as usual, or at least closer to it, the rebound is the backdrop for a renewed debate over Washington spending. Democrats say the government must keep spending big to keep the economy on track. They could try to pass President Joe Biden’s massive $4 trillion spending plan without any Republican votes in the Senate via budget reconciliation. Republicans argue that with business getting back to its feet, it’s time for the government to get out of the way.

Dig deeper: Read Harvest Prude’s report in The Stew about Biden’s infrastructure bill.