Read more about Joe Biden s $1.9-trillion plan offers bridge for hard-hit economy on Business Standard. The incoming Democratic administration s proposed package provides targeted aid that economists say delivers the most effective economic boost
Investors stormed into financial and energy stocks last week, BofA's weekly fund flow statistics showed on Friday, frontloading positions on expectations U.S. President-elect Joe Biden was planning a huge stimulus package.
The U.S. economy could face significant weakness over the next couple of months until coronavirus vaccines are widely distributed, but those vaccines, combined with the increased odds for fiscal stimulus under President-elect Joe Biden, could boost the economy in the long.
US eyes early rate rise as inflation threatens to bite
Indications that increases will begin after inflation has been at 2pc for a year amounts to regime change in monetary policy
14 January 2021 • 3:00pm
Inflationary pressures are building up rapidly across the US economy, forcing the Federal Reserve to shift gears and signal a much earlier rise in interest rates than previously suggested.
David Clarida, the Fed’s vice-chairman and policy guru, has announced that rate rises will kick off once US inflation tops 2pc and remains there for a year. While the language was couched in reassuring terms, it amounts to regime change in monetary policy and has serious implications for overheated asset markets.
Biden triggers a new Federal Reserve taper tantrum
After a giddy period for Wall Street, 2021 could see the tables turn in favour of workers
14 January 2021 • 9:36am
We know more or less what will pop the US equity bubble in the end, with inevitable fallout across the world. It is called a taper tantrum . We have had the first taste of it over the last week.
Every time since the Lehman crisis that the US Federal Reserve has tried to dial down quantitative easing (QE) and restore normality, it has been forced to beat a hasty retreat. It famously happened under Ben Bernanke in 2013 when tough talk sent the emerging market universe into a tailspin.