Analysts at Credit Agricole in Hong Kong in a response to Biden’s plans announced earlier.
- stimulus package underwhelmed the market
- provided a little support for the USD and yen
- But longer term, “the package does not likely encourage further Treasury yield rises and a stronger dollar”
- package will struggle to get past the filibuster and could end up smaller than the proposed $1.9 trillion
CA also weave in Powell’s comments Thursday (US time):
- “Powell continues to exercise flexibility around the Fed’s inflation overshoot commitment in terms of not committing to any formulas. He also cooled talk about taper”