Daily Archives: Mar 26, 2020 at 07:53 am EDT

Will Trillions Of Dollars In Stimulus Raise Inflation?

Before the coronavirus shock, inflation in the US appeared tame by the standard measures. But the macroeconomic earth has shifted in recent weeks to combat the fallout from Covid-19. The Federal Reserve has announced unlimited asset purchases and is running ultra-dovish monetary policy. Meanwhile, the federal government is about to roll out a new $2 trillion stimulus package. It all adds up to what is perhaps the most ambitious effort in history to grease the economy’s wheels (or at least prevent collapse). Is this herculean effort also laying the groundwork for higher or even soaring inflation?

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Macro Briefing | 26 March 2020

$2 trillion US economic stimulus package expected to become law today: Politico
What’s in the massive stimulus bill? TH
Pressure builds on Trump for gov’t intervention for ventilator output: BBG
US jobless claims filings expected to surge in today’s report: Reuters
What are the risks to Trump’s preference for reopening US by Easter? CNN
Should you expect to become immune to coronavirus at some point? NY Times
Economic assumptions upended amid coronavirus crisis: BBG
Consumer sentiment in Germany suffers dramatic decline: AF
US durable goods orders rose in Feb, but coronavirus damage lies ahead: MW
World trade’s 1-year trend fell deeper into the red in January: CPB