This week, Federal Reserve Board Chair Jerome Powell announced that later this month the Fed will begin “tapering” its asset purchase program now that the economy has moved past the need for extraordinary stimulus. As a reminder, to combat the recessionary effects of the pandemic and stimulate the economy, the Fed reduced interest rates to 0% and reintroduced an asset purchase program to the tune of $120 billion per month. By any measure, this is a remarkably large stimulus program.
Time for a New Year
2020 will be a year many Americans will want to forget, and rightfully so. Record unemployment, tragic loss of human life and people trapped at home with no where to go. No doubt, there is good news and bad news on the horizon.