Last Friday, the United State Congress passed the largest financial rescue bill in the country’s history and the president signed it into law. The total package, known as the Coronovirus Aid, Relief, and Economic Security Act, is valued at over $2 trillion which amounts to about 10% of the entire economy. The scope of this fiscal deal is immense.
The dual battle against the covid-19 virus and resulting financial turmoil continues. As it happens, in my annual State of the Markets presentation this year, I spent some time discussing economic history. This is a subject I’ve been increasingly reading about over the last 18 months.
It has been an extraordinary month as the reality of the spreading coronavirus and its economic consequences sets in. Unfortunately, the playbook for managing a pandemic of this nature will most certainly result in a hit to the economy. This crisis will pass, but the consensus among experts is it will likely take months.