Health and Human Services Secretary Alex M. Azar II (click here) declared a public health emergency for the entire United States to aid the nation’s healthcare community in responding to 2019 novel coronavirus....
As of August the stock price of Apple, Inc. to $500.04 US. There is only one reason for the increase and that is the application of IT across the business and public venues due to COVID-19.
If Trump is bragging about this being his Wall Street, then is he bragging about the fear in the country and rising numbers of victims in the USA to the virus? A reactive Wall Street is supposed to happen, but, the real question is should this have happened at all. If the strategy of closing down for 2 weeks to end the spread of the virus and contain it worked rather than squandered this dynamic would not be so stark.
The current stock markets are definitely reacting to the fact the USA has an active COVID-19 economy and is the largest such economy in the world. I don't really think that is something to brag about, but, Trump is mostly disconnected from reality and simply plays with propaganda.
There are seismic changes at the Federal Reserve. The Fed is now monitoring small amounts of inflation rather than simply inflation that can cause major economic damage. It is a significant change that reacts to a stronger labor market while controlling inflation in the face of GOOD WAGES. The change is to benefit consumers and keeps their interest rates lower. The less interest consumers pay, the more money in their pockets which improves their ability to improve their quality of life and ultimately purchase a home and enter into the American Dream.
Such good news to the markets means there will be less turbulence to stocks and more stability to long term outcomes. The COVID-19 market is likely temporary as the virus is conquered. Let's hope the USA will find it important to end the rampage of the virus under Trump and can join the rest of the world to return to normal. There is every reason for the American people to elect a new administration that is capable of ending the impact of COVID-19 on their lives so they can enjoy the new policies of the Federal Reserve and a more hopeful future.
September 1, 2020
By Jacob Passy
...The Fed (click here) is now officially less concerned about high inflation. Moving forward, central bankers will target inflation that averages 2% over time. This means that following a stretch with low inflation, the Fed might allow inflation to run above 2% for a period of time.
Along these lines, the Fed will concern itself less with the strength of the labor market. “A tight labor market is no longer correlated to inflation,” said Dan Geller, a behavioral economist and founder of consulting firm Analyticom.
In the past, the Fed’s official view was that a strong labor market could cause inflation to jump — as a result, the central bank would move to raise rates even if higher levels of inflation had yet to materialize when the job market was especially strong.
The new policy will allow the Fed to keep rates low even if the job market rebounds and inflation picks up. As a result, some have suggested that it may be many, many years before the central bank hikes rates again....
