Two trillion to counter the effects of Covid-19 in the US


30 Mar

Two trillion to counter the effects of Covid-19 in the US

Drastic change in health strategy. Massive backing by the Fed. Historic tax package. Slump in growth in Q2. The presidency to the Democrats? Rebound in equities.

Key points

  • Trump capitulates in the face of the magnitude of the health crisis in the US
  • The US is the new epicentre of the crisis
  • Alarmist estimates of up to 200,000 deaths
  • Is Trump losing the 2020 presidential election?
  • 2 trillion dollars to counter the effects of Covid-19
  • Key rates at zero
  • Increase in government deficit of close to 20% in 2020
  • Has the Fed exhausted its creativity?
  • Sharp contraction in GDP in Q2
  • Possible rebound in Q3
  • USD interest rates close to zero
  • What prospects for equity markets?