Jurrien Timmer, Director of Global Macro, provides his weekly market commentary and global macro update. Jurrien notes that the economy has recovered by about 70% now, but COVID-19 cases are still on the rise. He believes we need either a bridge from policy makers, through fiscal relief, or encouraging news on COVID-19, with cases falling or else headway on a vaccine. Following the past week’s election, Jurrien notes that over the past 100 years, there have only been two times that Democrats were in office but did not control the Senate and Congress. He thinks this situation could in fact be beneficial for Joe Biden, because it will give him an opportunity to work with Republicans, and things will still get done; the measures taken just may not be as extreme as they would have been without Republican Senate control. We are in an era when there needs to be more coordination between fiscal and monetary policy. Given where debt levels and demographics are, and how hard it is to grow out of a hard debt burden, fiscal and monetary authorities need to coordinate policies. Follow Jurrien on LinkedIn or @TimmerFidelity on Twitter for his detailed research reports and charts.
Recorded on November 9, 2020.