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Week Ahead - Volatility going nowhere - MarketPulse

US The two big data releases for the US will be the ISM manufacturing and the employment report.  The ISM manufacturing reading is expected to show a small decline in January.  The US nonfarm payroll report is supposed to show a rebound of 50,000 jobs in January, but it will be difficult as optimism is low for any signs of a rebound in leisure and hospitality jobs.    US Politics A busy week in DC will have investors following every incremental update on the COVID relief bill and whether Treasury Secretary Yellen will tweak the strategy with debt issuance.  On the stimulus front, lawmakers are early in negotiations so the divide should remain wide on what is an acceptable headline price tag of fiscal support.  

Fed s Mester says monetary and fiscal support needed to avoid lasting economic damage

Fed’s Mester says monetary and fiscal support needed to avoid lasting economic damage The U.S. economy will continue to require support from both monetary and fiscal policy as it recovers from the crisis caused by the pandemic and overcomes the challenges caused by a surge in infections, Cleveland Federal Reserve Bank President Loretta Mester said Tuesday. “Both monetary and fiscal policy have supported the recovery in the U.S. thus far, and in my view, both will continue to be needed to limit lasting damage to the economy from the pandemic,” Mester said in remarks prepared for an event organized by the European Economics and Financial Centre.

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