Probability of pre-election US fiscal has dwindled- Goldman Sachs

Analysts at Goldman Sachs are still expecting the US Congress to deliver more stimulus spending by the end of December, but believe the probability is now much lower than it was a couple of months ago. 

Key quotes

The August jobs report reduces political pressure for further stimulus. 

The two sides appear to be moving farther apart. 

There isn't much time left to reach a deal, as the House does not return until Sept. 14 and is scheduled to be in session only ten full working days. 

The US Nonfarm Payrolls data released Friday showed the economy added 1.4 million jobs in August, pushing the jobless rate lower to 8.4% and indicating a continued recovery from the coronavirus-induced economic crash observed in the second quarter.