Bad news for U.S. stocks and gold: US fiscal gridlock could last for weeks

category:Finance
 Bad news for U.S. stocks and gold: US fiscal gridlock could last for weeks


In other words, since the collapse of the talks on Friday (August 7), House Speaker Nancy Pelosi, Senate minority leader Schumer, Treasury Secretary mnuchin, and White House chief of staff meadow have not had a dialogue on the stimulus agreement.

The Republican Party and the Democratic Party obviously left the pot to each other and focused their artillery fire on the former controversial issues, including the scale of stimulus and the amount of unemployment benefits.

Stimulus agreement continues to drag economic outlook at risk

Barkin, chairman of the Richmond fed, warned that the current historic recession could worsen if the deadlocked Congress failed to provide more financial aid to workers and businesses.

Barkin said the outlook for the economy is likely to become clearer in the coming weeks, depending on the development of the epidemic and the amount of fiscal stimulus support.

What does this mean for the market?

Mark Zandi, chief economist of Moodys analysis, said in an interview with the media that the current administrative order issued by trump may be able to avoid a greater decline in the market, but it is far from enough. He believes that even if the executive orders are fully implemented, these measures will only boost the economy by $400 billion by the end of the year, far less than the $1.5 trillion he expected to need to avoid recession. In fact, analysts have already given a benchmark prediction on the stimulus agreement: if the stimulus package fails, it will mean a higher dollar, which will directly subvert the trading logic of the hottest gold and stock markets. In an interview with the media, btig strategist Julian Emanuel said his baseline forecast is that the $1 trillion stimulus plan will be implemented at some point in August, and any situation lower than this may lead to a stronger dollar. Source: Wall Street, editor in charge: Chen Hequn_ NB12679

Mark Zandi, chief economist of Moodys analysis, said in an interview with the media that the current administrative order issued by trump may be able to avoid a greater decline in the market, but it is far from enough.

He believes that even if the executive orders are fully implemented, these measures will only boost the economy by $400 billion by the end of the year, far less than the $1.5 trillion he expected to need to avoid recession.

In fact, analysts have already given a benchmark prediction on the stimulus agreement: if the stimulus package fails, it will mean a higher dollar, which will directly subvert the trading logic of the hottest gold and stock markets.

In an interview with the media, btig strategist Julian Emanuel said his baseline forecast is that the $1 trillion stimulus plan will be implemented at some point in August, and any situation lower than this may lead to a stronger dollar.