The K-Shaped Recovery
A K-shaped recovery describes the situation where performance for different parts of the economy goes in different directions. In this case, one part goes up while another part goes down, diverging like the arms of the letter K. Currently, the vertical line of the K is the starting point – when the U.S. economy shut down in March 2020 due to COVID. Since then, we’ve seen positive recoveries for the Big 5 stocks, as well as upswings for companies that support the quarantine lifestyle. The service industry mostly made up of small businesses, has been on a downward trajectory […]
The Key Objectives for the Federal Reserve
Also known as the Fed, the Federal Reserve was established in 1913 to act as the central banking system for the United States after a series of financial crises at the beginning of the century. It is an independent organization that reports to Congress for oversight, and it’s three key objectives are to stabilize prices, maximize employment, and moderate inflation. Over time, the Fed’s powers and influence have increased in response to crises, including the current pandemic. In this episode, Jay Pluimer recaps recent actions by the Fed, discusses what we can expect in the current environment with the […]
