The US Federal Reserve has said that it will keep interest rates lower for years to support recovery from the coronavirus crisis and recession. But the question is how low is going to be low enough.
A vaccine is not a fancy motorised scooter or a piece of operating software where a minimum viable product or MVP will do. This is not something that can be fixed on the fly after it has been injected into millions.
The US markets will be closed for Labour Day holidays on Monday. But there will be plenty of economic data to digest from the US, China, the EU and our northern neighbours, Malaysia.
We can now add another letter to the bowl alphabet-soup and raft of symbols and shapes that experts are predicting the economic recovery will take -- the letter "K"
While we have, collectively, decades of investing experience, we also recognise that we are going through a pandemic for the first time. We don’t want to be over-confident.
US Federal Reserve is aiming to boost average inflation above a 2% target, whilst keeping interest rates ultra-low for years to boost employment. The two key words are “average” and “target”.
