Weekly Economic Update: November 16th, 2020
• Treasury yields rose during the week with the two-year note increasing by one basis point to 0.18% while the five-year note increased by four basis point to 0.41%.
• Federal Reserve Chair Powell warned that the near-term economic outlook looks extremely challenging as an increasing amount of state and local governments impose lockdown restrictions to combat the ongoing surge in Covid-19 cases.
• Households have drawn down about 80% of their savings accumulated in March and consumer-revolving debt increased for the first time since February, further signaling that stimulus provided under the CARES act is being depleted.
• The Fed drifted further away from its inflation target with CPI and Core CPI posting no change in October as the economy still has a long, uphill climb to reach its potential output.