April 15, 2021
Significant pent-up consumer demand and improving psychological conditions may lead to upside surprises for economic activity in 2021. Financial markets have started to challenge the Federal Reserve’s accommodative policies. But the labor market still has to heal, giving the Fed leeway to continue supporting fiscal spending, inflation-targeting, and a more inclusive labor market and maintain its ultra-loose policy. With this backdrop, the Macquarie Multi-Asset Team examines in their quarterly outlook, “The afterburner that can take us into a new orbit,” the impact of monetary policy on the economic turnaround.
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