The unprecedented $2trn emergency stimulus package agreed by the US Congress last night to fight the fallout of the coronavirus pandemic may be the first of a number of such packages, industry experts have suggested, while the length of ongoing quarantine measures in the world’s largest economy is set to be the key factor in recovery.
Confirmation of the deal, which largely consists of money to bail out affected industries as well as helicopter money for US households, saw US equity markets rally by more than 9% last night, while Asian and European markets have also opened higher. It follows the Federal Reserve's package of monetary policy support, announced earlier this week, which effectively infinitely extended quantitative easing measures, and established facilities for the purchase of corporate bonds and support for municipal lenders. Reacting to market movements on Twitter this morning (25 March) deputy CIO...
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