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Five flashpoints to watch for in 2021 economy

Five flashpoints to watch for in 2021 economy Sylvan Lane © Getty Images Five flashpoints to watch for in 2021 economy The U.S. financial system has held strong through the first 10 months of the pandemic thanks in part to an unprecedented federal response and the unique nature of the coronavirus recession. While the economy remains deeply damaged and far from a full recovery, early concerns about frozen bond markets and plummeting stocks have largely been left behind. Even so, 2021 may hold new risks driven by the uncertain future of the economy and federal aid. Sky-high stocks The stock market was among the first sectors of the economy hit by the pandemic and the first to totally recover from its early economic chaos. While the share prices of companies in hard-hit sectors remain low, rallying tech stocks and a rebound across other industries unfettered by the pandemic pushed major stock indexes to record heights.

Fed s Brainard: Important to strengthen financial system to meet climate change challenge

12/18/2020 4:19:54 PM GMT | By Eren Sengezer It s vitally important to strengthen the US financial system to meet the climate change challenge, Federal Reserve Governor Lael Brainard said on Friday, as reported by Reuters. Additional takeaways The Fed  is making progress toward incorporating climate considerations. The Fed sees opportunities in years ahead to collaborate with other US financial regulators on climate change. The Fed looks forward to collaboration with foreign central banks on research and addressing data gaps on climate change and financial stability. Market reaction These comments don t seem to be having a significant impact on market sentiment. As of writing, the S&P 500 Index was down 0.67% on a daily basis at 3,697.

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