Weekly Economic Update: May 26th, 2020
• Bond yields crept slightly higher over the week with the two-year Treasury note edging up by two basis points to 0. 17% while the five-year note climbed three basis points finishing the week at 0.34%.
• Jerome Powell and Steven Mnuchin testified before the Senate Banking Committee and both agreed that more stimulus is needed to jump start the economy, however, Chairman Powell was not nearly as upbeat as Treasury Secretary Mnuchin regarding the recovery to come.
• Federal Reserve growth models are forecasting annual Q1 GDP to contract vehemently as the most optimistic forecast came from the New York Fed which is currently predicting a 31% drop.