02 Oct September 25, 2020
Week in Review
U.S. Economy
The September manufacturing purchasing managers index registered at 53.5 while the services index measured 54.6. Weekly jobless claims rose slightly to 870,000 from 866,000. Continuing jobless claims fell from 12.747 million to 12.580 million.
Our Take: Both purchasing managers indexes are in expansionary territory as the economy continues to recover from the shutdown-induced recession. Jobs data, however, indicates that the continued recovery may be slowing down.
Powell Testimony
Federal Reserve Chairman Jerome Powell joined the Treasury Secretary Steven Mnuchin in Washington as part of a three-day testimony to Congress over the response to COVID-19. Since the beginning of the pandemic, the Fed and the Treasury have introduced a host of programs and initiatives designed to provide liquidity and help support the economy. Although the U.S. is experiencing an economic recovery, Chairman Powell noted more government spending would be needed to sustain it.
Our Take: Although the Fed remains committed to its support of the economy, the path forward remains uncertain. Failure of Congress to pass additional relief adds to worries of slower economic growth.
All expressions of opinions are subject to change without notice in reaction to shifting market conditions. All information is based on sources deemed reliable, but no warranty or guarantee is made as to its accuracy or completeness. Neither the information nor any opinion expressed herein constitutes a solicitation for the purchase or sale of any securities and should not be relied on as financial advice.