There are already signs of a vibrant economic rebound in the U.S. economy. Perhaps this isn't too surprising given the Federal Government's fiscal response and the Federal Reserve's monetary response, which far exceed the Great Recession. Accordingly, MUFG forecasts a rebound in U.S. real GDP growth and in employment that is stronger than either the consensus estimate or the FOMC's SEP economic projections.
This recovery, however, may be on a collision course with further community spread of COVID-19. And, to make things even more interesting, this would likely happen in the run-up to the November 3rd National Elections.
In this episode MUFG Rates Strategist, John Herrmann, reviews his "Year 2020 Strategy Update," including his view on second half growth, the path of COVID-19 and the reopening of the U.S. economy. He also shares what this all means for his core strategic investment stance of a 2s-30s yield curve steepener.
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