empty
09.03.2021 02:13 PM
Will the US stimulus plan work?

United States officials at all levels are relentless in making statements about business incentive measures. So, Treasury Secretary Janet Yellen, on Monday, reassured the financial world with promises that Joe Biden's program would definitely work.

We have already faced the consequences of the anti-crisis strategy of economic development from the Democrats. Widely advertised at first, it deftly reassured investors at a critical moment. But later, serious scandals broke out around the distribution of subsidies. In November, the Department of Treasury even tried to withdraw funding for one of the most controversial projects – providing liquidity in the field of salary protection (PPPLF).

The programs closed one after another, and as of December 31, only four remained in the package: Commercial Paper Funding Facility (CPFF), Primary Dealer Credit Facility (PDCF), Money Market Mutual Fund Liquidity Facility (MMLF), and the infamous Paycheck Protection Program Liquidity Facility (PPPLF).

This image is no longer relevant

News from the US Federal Reserve will have an ambiguous effect on the dollar

On March 8, the Federal Reserve System officially announced the extension of the deadlines for securing the salary budgets of enterprises to return some of the illegally obtained funds to large companies. The other three expire on the last day of the month.

As already known, on Friday, against the background of positive trends in the labor market, the Senate approved a new package of anti-crisis measures, despite the opinion of Republicans about the "excessiveness" of the allocated piece of the state budget. This time, the finances will not go to entrepreneurs, but directly to consumers. Probably, in this way, the government intends to stimulate the growth of consumption and support the producer through this step.

However, what will happen if people who have been taught by bitter experience hide money "in a pot"? Will the national currency rate withstand the failure of the previous measures of the Democratic Party, given the fall in oil prices, which is expected in connection with the long-awaited warming in the northern hemisphere?

Some analysts believe that such subsidies will only lead to a blow to currency pairs and provoke a jump in the value of goods. Of course, inflation is not the same, and the situation with the coronavirus is clearly stabilizing, however, so far the presidential administration has not demonstrated significant success in stimulating the economy, having failed the previous project. This news will most likely affect the market indicators in April-May.

Egor Danilov,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Global Market Dynamics: China, the US and AI Are Driving New Trends

Intel rises after a report that the new CEO plans to reorganize manufacturing and artificial intelligence operations. February retail sales rise 0.2%. New York manufacturing activity fell in March. Hong

05:16 2025-03-18 UTC+2

Global Markets in Action: China, US, and AI Set New Trends

Intel Gains After New CEO Plans AI Manufacturing and Operations Overhaul February Retail Sales Up 0.2% New York Manufacturing Activity Falls in March Hong Kong Stocks, Kiwis Gain on China

Thomas Frank 04:59 2025-03-18 UTC+2

US Market News Digest for March 17

US markets rally on Friday: S&P 500 gains 2.1%, Nasdaq Composite rises 2.6% The US stock market ended the week on a high note, as if the recent turbulence never

Natalia Andreeva 14:04 2025-03-17 UTC+2

Fed against trade war. Can monetary policy rescue economy?

The US stock market continues to experience turmoil, driven by uncertainty surrounding Donald Trump's stance on import tariffs. Investors are eagerly awaiting the Federal Reserve's meeting next week, hoping

13:23 2025-03-17 UTC+2

Fed vs. Tariff War: Will Monetary Policy Save the Economy?

The U.S. stock market continues to be shaken by Donald Trump's uncertain stance on import tariffs. Investors are eagerly awaiting next week's Federal Reserve meeting, hoping for hints

Thomas Frank 10:07 2025-03-17 UTC+2

US Market News Digest for March 14

Yesterday, the S&P 500 index hit the target level of 5,516 – the same level as June 20, 2024, which is the 23.6% Fibonacci retracement of the entire rally from

Natalia Andreeva 10:34 2025-03-14 UTC+2

Gold hits record high at nearly $3,000 an ounce. Why are investors dumping stocks en masse?

Wall Street indexes down 1%, S&P 500 confirms correction Trump's tariff changes affect sentiment Gold hits all-time high at $2,993.80 an ounce The US dollar fell against

Thomas Frank 09:40 2025-03-14 UTC+2

Clash of corporate giants: Intel stock soars, PepsiCo loses ground

Intel shares jumped following news that TSMC has extended a joint venture to American chip manufacturers. PepsiCo, on the other hand, fell due to a brokerage downgrade. The latest

10:42 2025-03-13 UTC+2

US Market News Digest for March 13

Intel shares saw an uptick following news of a proposal by TSMC to support US chip manufacturers. This development bolstered investor confidence in the semiconductor sector. Meanwhile, PepsiCo shares came

Ekaterina Kiseleva 10:09 2025-03-13 UTC+2

Intel Stocks Soar, PepsiCo Loses Support: Who Will Win the Race?

Intel Jumps After TSMC Unveils JV with U.S. Chipmakers PepsiCo Slips After Broker Downgrade CPI Shows February Inflation Slowed More Than Expected Indices: Dow Down 0.20%, S&P 500 Up 0.49%

Thomas Frank 05:43 2025-03-13 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.