The Fed Pledges Continued Aid – September 23, 2020

Actions taken by the Federal Reserve and comments from the Fed chairman affect markets. The sharp rally from the March low is due, in part, to the extraordinary measures taken by the Fed.

In Congressional testimony this week, Fed Chairman Powell said the Fed is “committed to using our tools to do what we can, for as long as it takes, to ensure that the recovery will be as strong as possible.”

Powell noted that about half of all jobs lost have come back, and consumer spending is up about three-quarters. He added, “The economy is healing.”

But he also said economic activity remains below pre-Covid levels.

• This is particularly acute in activities that require person-to-person interactions including travel, theater, arena events, and sporting events.

“A full recovery is likely to come only when people are confident that it is safe to reengage in a broad range of activities,” Powell said.

He encouraged Congress to pass a new stimulus bill.

Investors corner

Stock market volatility can’t be eliminated, but a well-crafted financial plan is designed to help you reach your financial goals. While risk can’t be eliminated, concrete steps can be taken to manage risk and reduce volatility.

If you have a comprehensive financial plan that has you on the path toward your financial goals, you are to be congratulated. You have chosen the narrow path.

Created 2020-09-23 19:12:57