The Federal Reserve convened this week for its last meeting in 2020. The Fed didn’t make any significant changes to its policy and provided accommodating forward guidance and some clarity on its asset purchase program. The Fed expects to purchase 80 billion worth of bonds and 40 billion of MRS a month for…
The Spanish economy could contract by 13% in 2020 (see IMF June report) and up to 15% (according to Bank of Spain’s risk scenario) amid the adverse economic ramifications of the Covid-19 pandemic. Although the economy continues to struggle, the housing market has yet to show signs of weakness. On the contrary, housing…
The COVID-19 pandemic led the Federal Reserve to slash interest rates to the zero lower bound (ZLB), provide support to the repo market, and purchase treasuries and corporate bonds, among other tools it has utilized. While the response of the Fed has helped shore up liquidity in the financial markets, it may need…
In a recent report, the IMF predicted Spain’s GDP could contract by 8% in 2020; the Bank of Spain estimates this year’s decline could reach 12.4% if the lockdown lasts 12 weeks (for now, the lockdown is expected to last at least eight weeks). These predictions, while grim, appear to assume a V…
Unlike last year’s contentious FOMC meeting in December, this year’s rate decision was uneventful, as the Federal Reserve kept rates, as markets expected, unchanged. Looking forward, the Fed’s dot plot points towards no change in interest rates in 2020 and a single rate hike in 2021. However, I wouldn’t put much faith in…