Presidents Joe Biden and Dwight Eisenhour have much in common. They have implemented huge infrastructure projects. And both have Wall Street growth not seen since the 1950s.
Biden’s recent dramatic stimulus package, did indeed, spur the economy. Why? People have been stretched thin, and they put that money directly back into the economy. Some worry the economy is improving too quickly. One of the savviest money people around, Secretary of the Treasury Janet Yellen told people not to worry.
JPMorgan Chase strategist John Norman wrote, according to CNBC News:
‘Biden’s first 100 days have already delivered the strongest post-election equity returns in at least 75 years, due to record fiscal stimulus and despite heavy use of Executive Orders. The results are “not bad for some [former President Donald] Trump labeled as Sleepy Joe during the campaign.’
Chief Market Strategist at National Securities Art Hogan said:
‘Anyone that became president this year was going to have a pretty significant tailwind. You’re coming into a point where you had to just not mess things up, and hopefully improve on what it was you needed to get done.’
The nation is still vaccinating around three million people a day, and that number could be linked directly to the nation’s improving economy:
‘It will be intriguing to see what the next 100 days looks like. There’s a significant tailwind for reopening. The tug-of-war between the virus and vaccine is finally being won by the vaccine.’
‘For sure, I would get concerned about going too far, too fast. But the corrections seem like they’re happening on a rotational basis instead of an index basis. At some point in time, there will be something that gums this up.’
Chief economic advisor at Allianz, Mohamed El-Erian added:
‘[O]utcomes-based [policymaking is a mistake with inflation rising creates] massive liquidity and a significant pickup in the economy recovery [propelling the markets until] either a policy mistake or some sort of market dislocation.’
He appeared on Squawk Box:
‘The risk of falling behind is high. Then you have to slam on the brakes. That’s the one thing that can really disrupt the markets, if we get them slamming the brakes. So I would rather see them slowly tap the brakes now than have a very high risk of them slamming the brakes down the road.’
Officials have said the higher inflation numbers are supply-driven inflation:
‘I’m really worried that what they hope is transitory inflation is going to end up being persistent inflation. If we end up in a persistent inflation world, they’re going to have to slam on the brakes, and the market reaction then will be much worse than it would be if they just tapered a little bit now.’
Indeed, Biden’s results have been stunning. thus far. The S&P 500 has risen 24.1 percent in the last 100 days. Okay, more precisely, 96 days since Inauguration Day, leaving other presidents in the dust.
In 1953 when President Eisenhower took office, he saw an 18.5 percent rise in the economy:
‘Trump, who often touted how well stocks were doing, saw just an 11.4% rise for the first 100 days.’
Congress already has already appropriated over $5.3 trillion on COVID-related relief efforts. The Fed’s bond purchases have nearly doubled its balance sheet to just shy of $8 trillion
The Mueller Report Adventures: In Bite-Sizes on this Facebook page. These quick, two-minute reads interpret the report in normal English for busy people. Mueller Bite-Sizes uncovers what is essentially a compelling spy mystery. Interestingly enough, Mueller Bite-Sizes can be read in any order.