Tom Barkin, Chairman and CEO of the Richmond Federal Reserve, says spending is coming back faster than employment.
Additional conclusions
“The recent escalation in cases makes me believe that we still have a long way to go.”
“It seems very likely that there is a divided government.”
“Maybe there is a smaller specific stimulus, but you may see a revision of fiscal prudence in the coming months.”
“Monetary policy will remain flexible until we see the economy recover.”
“There is still a lot of money in people’s pockets that will cushion the fall in fiscal aid.”
Market implications
The previous meeting of the Federal Reserve has little consequence for the currency space, as the concentration occurred elsewhere with the US elections.
The upcoming Federal Reserve meeting will be pivotal for markets considering the elusive fiscal stimulus package and we could see a shift in QE very soon.
“Powell’s focus on COVID and more needs for fiscal stimulus highlights part of the tactical concern of chasing a weaker USD from current levels,” explained analysts at TD Securities.
.

Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.