“The strength in the US economy stands tall, and will lead the global recovery“– Paul Ebeling
America’s economy appears set to leave other developed markets in the dust this yr with the largest annual growth spurt in decades according to the new Fed indicate, but that does not worry Fed Chairman Powell.
If anything, Chairman Powell sees a greater likelihood the strong US rebound from the VirusCasedemic will help jump-start countries still struggling to find their footing, like the EU that remains in limbo.
“US demand, very strong US demand, as the economy improves, is going to support global activity as well, over time,” Chairman Powell said Wednesday in a news conference following the Fed’s latest 2-day policy meeting.
“When the US economy is strong that strength tends to support global activity as well, so that’s one thing”.
Wednesday the FOMC forecast US GDP would spike to 6.5% in Y 2021, its fastest rate since the 1980.s.
By contrast European Central Bank President Christine Lagarde says that the Eurozone economy would likely contract in in Q-1. ECB staff forecasts growth in the bloc at 4% in Y 2021.
The divergence is not just with Europe. A Reuters poll last month estimated Japan will suffer a contraction in Q-1 and that FY 2021 growth would come in at 3.6%.
Wednesday, the benchmark US stock market indexes finished at: DJIA +189.42 at 33015.37, NAS Comp +53.64 at 13525.22, S&P 500 +11.41 at 3974.12
Volume: Trade on the NYSE cane in at 1.1-B/shares exchange
HeffX-LTN’s over all technical outlook for the major US stock market indexes is still Bullish with a Very Bullish bias.
- Russell 2000 +18.3% YTD
- DJIA +7.9% YTD
- S&P 500 +5.8% YTD
- NAS Comp +4.9% YTD
Looking Ahead: Investors will receive the weekly Initial and Continuing Claims report, the Conference Board’s Leading Economic Index for February, and the Philadelphia Fed Index for March Thursday.
Have a healthy day, Keep the Faith!