Fed Will Be Tested in 2021 as Vaccines Boost U.S. Economic Outlook | Investing News

(Reuters) – If 2020 was the year the Federal Reserve overhauled its game plan for supporting the U.S. economy, 2021 will be the year its new approach gets tested should a coronavirus vaccine deliver the lift that many analysts expect.

In its final policy meeting of the year this week, the U.S. central bank is expected to keep its key overnight interest rate pinned near zero and to signal it will stay there for years to come; many analysts also expect new guidance on how long the Fed will keep up its massive bond-buying program.

The super-easy monetary policy is part of a long-term strategy the Fed adopted in August to help it navigate a world of persistently low interest rates that limits the central bank’s options for fighting downturns and makes it difficult to hit its 2% inflation goal.

The idea is to counteract any unhealthy downward drag on

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The Long Leading Indicators Are Roaring For An Economic Takeoff In 2021


Last week when I wrote that substantial backward revisions to adjusted corporate profits had intensified concern about the short-term forecast, I mentioned that I wanted to update two things: (1) how the producer side of the economy would have to play out, and (2) the short leading indicators.

The first part I posted earlier this week. Today I am examining the second part.

Geoffrey Moore, who for decades published the Index of Leading Indicators, and in 1993 wrote “Leading Economic Indicators: New Approaches and Forecasting Records,” identified 4 long leading indicators, and 11 short leading indicators.

In this post I will examine the long leading indicators.

They are:

  • Housing permits
  • Corporate bond yields
  • Real money supply
  • Corporate profits adjusted by unit labor costs

What we see is that all of them are positive, and several are at *extremes* of positivity.

Corporate bond rates and the yield curve

Underlying most

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Pricey stocks may yet head higher as uneven economic recovery maintains grip on U.S.

Three U.S. stock markets hit all-time highs this month, and the value of all global shares for the first time topped $100 trillion as investors bet on a post-pandemic return to normal in 2021. The stock price of rental marketplace Airbnb more than doubled Thursday, even as the Labor Department said nearly 1 million more Americans had applied for unemployment benefits, neatly capturing the tension between a bubbly stock market and grass-roots anguish.

“We’re in a euphoric, frothy kind of market,” said Liz Ann Sonders, chief investment strategist for Charles Schwab & Co. “Is there speculative fever? Absolutely.”

Yet the bull market may just be getting started. With the Federal Reserve planning to hold its benchmark lending rate near zero for at least three years, stocks are likely to remain attractive in comparison with bonds, according to investment strategists.

Soaring stocks would cheer millions of Americans. But rapid financial market

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Women entrepreneurs are the engine that drives the post-pandemic economic recovery in Latin America, according to study

Kate Rowan and woman posing for a photo



© Provided by Entrepreneur

By Janet Rivera – Hernández, Vice-president of Communications for Mastercard Latin America and the Caribbean.

  • The COVID-19 pandemic negatively affected 87% of the world’s companies led by women.
  • 42% of female entrepreneurs moved their business models to the online universe this year, while 37% are developing new businesses that respond to the needs of the place and the moment, and 34% identified new business opportunities during the pandemic.

The myth of Theseus and the Minotaur tells the story of the hero who defeated the monster that lived inside a labyrinth, and who managed to get out of it thanks to the guidance of a magic thread that Ariadna, his lover, a symbol of the woman who does not fear and who dares to seek new paths. Something similar to what happens today with the role of women entrepreneurs: immersed in the greatest recession in

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