Saturday, November 28, 2020

JPMorgan becomes first major bank to say first-quarter GDP will decline because of Covid surge



    The JPMorgan economists become the first to disagree with Wall Street's forecast of 2021 Q1 showing positive economic growth and instead say that due to the recent surges in covid cases the first quarter of 2021 will be negative. They see the economic growth shrinking down by one percent in the first quarter and then rising to 4.5 in the second quarter and rising even more to 6.5 in the third quarter of 2021.This all being said JPMorgan economists still think that the year 2021 will be met with good expansion in the second and third quarters due to the hopeful development of a vaccine . Not only are they predicting that the positives of a vaccine will help the economy but more stimulus checks will help the economy to see increased growth in the second and third quarters as well.  In the end, the JPMorgan economists believe that this growth we were experiencing in the months after the shutdown was the economy opening up but now the majority of the economy is opened and running and now we are facing restrictions that will slowly close the newly opened economy, Sadly the side effects will be decreased growth from q4 of 2020 to q1of 2021. Hopefully, the positives of a vaccine and more financial help from the government will help the economy grow and move past the restrictions after they are implemented in 2021.

Do you think these factors will help the economy to see growth?

https://www.cnbc.com/2020/11/20/jp-morgan-says-first-quarter-gdp-will-decline-because-of-rising-covid-cases-and-restrictions.html


Friday, November 27, 2020

Biden's First 100 Days in Office

With the president-elect looking to enter the White House with a divided Congress, it is not clear when we would start seeing Biden’s plans for the economy, environment, education system, and health care take form. Instead, in his first 100 days, Biden plans to focus on more immediate issues, hoping to gain bipartisan support. 

On his first day in office, or beforehand, Biden has several plans surrounding COVID-19: 

  • Biden has already announced a team of advisors to spearhead his pandemic response once he takes office. 

  • Begin work on a new coronavirus aid package, coordinating with state governors, mayors, and other local politicians. 

  • Expand coronavirus testing resources as well as for increasing the country’s capacity to make personal protective equipment. 

  • Install “an effective distribution plan” - His plan includes spending of $25 billion on vaccine production and disbursement and calls for an eventual vaccine to be free for all Americans. 

  • Mend relationship with the World Health Organization by rejoining the body. 


Aside from his COVID-19 plans, Biden also plans to reverse Trump’s corporate tax cut, raising corporate income taxes from 21-percent to 28-percent. Biden additionally has plans to reenter the U.S. in the Paris climate accord of 2015. Furthermore, on his first day, Biden plans to produce comprehensive immigration legislation that will create a pathway to citizenship for 11 million migrants living in the U.S. illegally. With the first immigration plans, he has also pledged to make the DACA program permanent on his first day in office, stop the practice of separating immigrant families trying to enter at the border and rescind the restrictions on people in Muslim-majority countries from traveling or immigrating to the U.S. 


For Biden’s first 100 days in office, his plans include more points on immigration, where he wants to reform the U.S. asylum system and the treatment of people at the border with Mexico. The funding for the construction of a wall along the southern U.S. border will additionally be discontinued, however, Biden says that he will not take down the parts already constructed. Aside from immigration, Biden also plans to:

  • Institute a national police oversight commission as part of his larger plan to help overhaul policing.

  • Quickly push Congress to pass the SAFE Justice Act, a first step in addressing prison reform and crime prevention. The legislation includes taking steps to reduce the use of mandatory minimum sentencing for nonviolent offenses and institute policies geared at lowering recidivism.

  • Reach out to U.S. allies to work on foreign policy. Biden wants to plan an international summit where democratic leaders will discuss ways to fight corruption and authoritarian practices. He additionally wants to plan a climate world summit to assist nations with high carbon emissions to take climate action. 


Due to the volume of his plans, some people wonder if Biden will be able to execute them all, do you agree with this question? Additionally, what do you think of Biden’s plans for his first 100 days in office? When do you think we will start seeing Biden’s bigger plans for the economy and environment?


https://www.npr.org/2020/11/09/932190347/bidens-first-100-days-here-s-what-to-expect

Monday, November 23, 2020

Federal Reserve To Wind Down Pandemic Programs After Rare Clash With Treasury

 https://www.npr.org/sections/coronavirus-live-updates/2020/11/20/937009220/fate-of-pandemic-funds-sparks-unusual-dispute-between-treasury-and-federal-reser

The Fed decides to wind down Covid stimulus programs at the end of the year. Emergency funds are rarely used, but this year, these funds have been vital since March to help with the economy during the pandemic. The Treasury Department has convinced Jerome Powell that the funds are not needed anymore because "they have done their job." These funds include small-medium business loans and extensions on rents. This is all against what the Fed wants to do as they desire to extend the use of these funds. Some business owners have begged for more help as states are starting to shut down again. Powell also hopes that with Biden coming into office, the funds will begin being used again. In the end, however, the Fed must follow the Treasury's requests to slow down the spending.

How do you think this will change the recovery of the economy?

Global Stocks Rise Ahead of US Data Amid Virus Unease

Due to the United States presidential election and the Coronavirus regulations, the global stock market rose. Countries are consider about the U.S. possibly locking down because this would have a negative impact on global services relating to business and travel. The following have risen, FTSE 100 in London, Shanghai Composite Index, Kospi in Seoul, and India’s Sensex. Due to Trump’s unwillingness to concede, he has been the driving force of market nerves. Will Asian stocks rise or fall once Joe Biden is in office?


Article Link: https://www.usnews.com/news/business/articles/2020-11-23/asian-stocks-rise-ahead-of-us-economic-data-amid-virus-fears