Bostic Update on Stimulus

Atlanta Federal Reserve President, Raphael Bostic, addressed the Fed’s continued role in our recovering economy this morning after sobering retail sales figures were released for last month. Bostic reassured that the central bank is prepared to provide economic stimulus through multiple avenues as it looks like the US moves toward the eye of the COVID storm. While Bostic expects a “robust recovery” once the vaccine is able to be distributed to the masses but spoke of the, “short-term and intermediate-term concerns with the spike in the virus and what that’s going to do for business in terms of the things that they’re able to produce, in terms of consumers and their willingness to go out and buy things”. While Bostic did not specifically mention if the Fed will continue to purchase assets or mention any other stimulus tool it will use, he said, ““we are committed to using all of our tools. They have some juice and we’ll deploy them as necessary”.

Stocks are down this morning after yesterday’s rally while mortgage backed securities continue yesterday’s upward trend. We are holding a locking bias due to the number of large pending news stories surrounding the COVID vaccine unless you are able to closely monitor the market.