COVID-19 UPDATE: Daily cases fall to 20,027 over the weekend (-5,000 vs Friday). Record balance in money markets $4.8T even as equities retraced >50% of its losses

COVID-19 remains a global crisis and we realize that many people need to keep up with COVID-19 developments, particularly since we are moving into the more critical stage ("restart economy"), so feel free to share our commentary to anyone who has interest.



CBS 60 Minutes aired an interview by Scott Pelley with Federal Reserve Chairman, Jay Powell (transcript link --> 60 Minutes interview). It was a wide-ranging interview, but two things really resonated us:

- first, Powell's statement "we're not out of ammunition, by a long shot"
- second, when asked what he is watching, he responded "the thing that matters the most is the medical metrics"

This pretty much lines up with our thinking.  Don't fight the Fed (just like we can't fight City Hall).  I was surprised to hear him relay that medical metrics matter the most.  This has been our take.  That we need to track the progress of the disease to be informed about the investment roadmap.  And of course, this is logical.  But we do not hear this often when people are commenting on their economic outlook.

The video in this report is only accessible to members



This statement is really the key statement from the interview.  The Fed is not out of ammunition and there is no limit.

The video in this report is only accessible to members
https://www.cbsnews.com/news/full-transcript-fed-chair-jerome-...

Unlock this article with a FREE 30-Day Trial!

An FSI Pro, or FSI Macro subscription is required in order to access this content.

*Free trial available only on a monthly plan

More from the author

Disclosures (show)

Get invaluable analysis of the market and stocks. Cancel at any time. Start Free Trial

Articles Read 2/2

🎁 Unlock 1 extra article by joining our Community!

You’ve reached your limit of 2 free monthly articles. Please enter your email to unlock 1 more articles.

Already have an account? Sign In

Don't Miss Out
First Month Free