Anthony Fauci, the economic Cassandra, is screaming about the 2nd wave of the Covid virus. This will lead to a reversal of the re-opening of the US economy and further economic disaster. Hence, these fears have driven the Dow down almost 7%.
As Atlanta Fed’s Q2 GDP forecast is at -48.466%.
And the Taylor Rule suggestion for the Fed’s target rate is -11%. Although Powell won’t go there … at least yet.
Other than not shutting down the economy, Chairman Powell must be panicking. But at least Powell is diversified!
Maybe the economy needs a douse of Pabst Blue Ribbon!