MAY 4, 2020 – FED DIGGING IN FOR A LONG ROAD TO RECOVERY The Fed announced plans to back private debt markets last week, which caused the stock market to rally. But the Fed realizes a lot more is needed to fight the aftereffects of the virus as the US economy starts to reopen. Fed Chair Jerome Powell delivered a …
April 27, 2020 — Some States Start to Reopen
APRIL 27, 2020 – SOME STATES START TO REOPEN As nearly one in six workers are out of a job in the United States, some states are starting to slowly reopen for business. At last count, 26 million people are out of work with levels of unemployment not seen since the Great Depression of the 1930’s. Georgia, Oklahoma, Florida and …
April 20, 2020 — Bad News Abounds
APRIL 20, 2020 – BAD NEWS ABOUNDS Until the economy starts to reopen and eases back into business, the news will be grim. As several states have extended stay-at-home measures into May to control rising numbers of coronavirus cases as another 5.2 million people filed for unemployment last week, bringing jobless claims over 22 million. Consumer and manufacturing reports for …
April 13, 2020 — Dire Forecast for Q2, but Hope for a Q3 Rebound
APRIL 13, 2020 – DIRE FORECAST FOR Q2, BUT HOPE FOR A Q3 REBOUND As economists throw modeling out the window, in what we hope is a once in a lifetime event, JPMorgan is expecting a 40% decline in GNP for the second quarter and an unemployment rate of 20% in April, with the US having lost 25 million jobs. …
April 6, 2020 — Unemployment Soars
APRIL 6, 2020 – UNEMPLOYMENT SOARS 6.6 million Americans filed for unemployment insurance last week, bringing the total to 10 million filings over the past two weeks in record-shattering job losses. Before the coronavirus shut down much of the economy, the highest week for claims was 695,000 in 1982. The high during the last recession was 665,000 in March 2009. …
March 30, 2020 — The Economy Stops on a Dime
MARCH 30, 2020 – THE ECONOMY STOPS ON A DIME The job expansion that began in 2010 has ended. We hope temporarily. Until March, employers added to the payrolls for a record setting 113 months. The unemployment rate was 3.5% in February, levels that were last seen in the 1960’s. And, finally, wages had started moving up after lagging the …
March 23, 2020 — Interest Rates are Effectively at Zero
MARCH 23, 2020 – INTEREST RATES ARE EFFECTIVELY AT ZERO In an attempt to mitigate slowing economic growth form the effects of the COVID-19 pandemic, the Fed cut interest rates by 100 bps last Sunday. This has taken rates down to effectively zero, their lowest since 2015. The bank also went ahead with a huge $700 billion quantitative easing program. …
March 16, 2020 — Fed Addresses Liquidity Strains
MARCH 16, 2020 – FED ADDRESSES LIQUIDITY STRAINS The Fed sped up its previously announced purchases of treasury securities to try and ease the strains on the financial markets. On Friday, they announced they would buy about half of some $80 billion in treasury securities they said would be purchased over the course of a month. They are ready to …
March 9, 2020 — Sudden Drop in Interest Rate to Mitigate Coronavirus Fears
MARCH 9, 2020 – SUDDEN DROP IN INTEREST RATE TO MITIGATE CORONOVIRUS FEARS On February 21 the recession odds for the US were at a 15-month low, according to JP Morgan; only a week later virus fears caused the market to slide down 10 percent. Investor confidence was shattered by fears of a global slowdown as a result of spreading …
March 2, 2020 — Powell Opens Door to Possible Interest Rate Cut
MARCH 2, 2020 – POWELL OPENS DOOR TO POSSIBLE INTEREST RATE CUT Reversing his determination not to cut interest rates, Fed Chair Powell said on Friday he would be open to bringing rates down to stave off a recession brought on by coronavirus fears worldwide. “The fundamentals of the U.S. economy remain strong,” Powell said in a statement released by …