The historic monetary and fiscal stimulus since the COVID-19 recession began has been nothing short of breathtaking. As Fed Chair Powell recently stated, the Fed will act “forcefully, proactively, and aggressively” in support of economic recovery. The Fed has a dual mandate – to achieve full employment and stable prices, which they have continually defined as sustained 2% core inflation. The Fed has stated very clearly that they plan on continuing historically accommodative monetary policy until the economy is in a sustainable recovery likely to avoid a replay of the Great Depression era by withdrawing monetary accommodation too early.

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