By Scott J. Brown, Ph.D., Raymond James
Looking Back, Looking Ahead – Monetary and fiscal policy played a significant role in lessening the pandemic’s impact on the economy. The Fed has done its part, ensuring that there is plenty of liquidity in the financial system. Further fiscal support is needed, but has been difficult to achieve. As a consequence, growth is likely to slow into early 2021. However, growth should pick up as vaccines are rolled out. Beyond that, the new administration will have an ambitious agenda.
This Week – A feast of economic data on Wednesday, but none of it is expected to be market-moving. The estimate of 3Q20 GDP growth is likely to be revised higher and October personal income and spending should suggest a strong start to the fourth quarter (looking ahead, momentum is expected to slow as COVID-19 cases surge).