Weekly Economic Update: March 1st, 2021
• The yield curve continued to steepen over the week as the two-year Treasury note increased by two basis points to 0.12% while the five-year note increased by 15 basis points to 0.73%.
• All three major indexes finished the week lower on rate fears as yields on longer bonds continued their climb upward.
• The $1.9 trillion American Rescue Plan was passed to the Senate for approval over the weekend and is expected to take effect by mid-March.
• Chair Powell reaffirmed the Federal Reserve’s intention to meet its inflation and employment goals stating there is no interest in adopting any preemptive rate-hiking strategy to combat inflation.