With Democrats set to hold a majority in both chambers of the U.S. Parliament, the likelihood of further coronavirus aid in the U.S. is increasing, reports Dr. Ulrich Stephan, chief investment strategist for private and corporate clients at Deutsche Bank, in a recent letter.
Package of measures expected to exceed $1 trillion
He said he expects the new administration under President Biden to launch new measures worth nearly $1 trillion before the end of the first quarter. In addition to an increase in the already approved cash transfers to up to $2,000 per eligible person – so-called stimulus checks – these are likely to include, above all, an increase in government unemployment benefits.
Weak US labor market
The weak labor market report last Friday provided sufficient arguments. The associated increase in the purchasing power of private households should lead to more consumption and a strong growth impetus for the US economy in the new year.
Economic output back to pre-crisis level in second quarter
Economic output could return to pre-crisis levels as early as the second quarter. The additional growth should provide further tailwind for selected cyclical stocks in particular, which should still have catch-up potential compared with growth stocks.
Source: Deutsche Bank
Steelnews.biz constantly searches the Internet for important, interesting and informative news.
Are you missing an information, do you have a question or are you interested that we refer to a certain article or press release of Steelnews.biz? Then simply contact us now.
We always try to refer to the correct source of a news item.
Disclaimer: Many things here represent our opinion. Others are information from the Internet. We can therefore never claim to be correct or complete. And never base a business decision solely on the news you receive from us.