The Daily Update: Covid Hole / Trump's Message

Yesterday San Francisco President Mary Daly again warned that the U.S. economy remains far from full employment and inflation conditions needed to end bond purchases, adding that when that day does eventually come any reduction of monetary stimulus will be telegraphed by the Fed well in advance. ‘We're a long way from achieving our full employment and price stability goals, so it's not really the right time to start talking about rate normalization," she said adding that the US is a ‘long way from digging out of the hole that Covid caused’. She also pointed to the 8.5 million workers in the U.S. who remain on the side lines. Fears of rapid inflation are a bit overblown, she went on to say, noting that tolerating a phase of inflation around 2.5% wouldn't be that different than when the Fed was coping with price gains around 1.5%.

Also, after being banned from the likes of Facebook and Twitter former US president Donald Trump may have found a way to still get his message across. Trump has launched a space on his own website where he posts messages that can be shared by others using their own social media network. So far the contents of Trump's posts will not come as a surprise to anyone. He reiterates the claims about voter fraud in the last presidential election, as well as his criticism of Republicans who have not supported him. However, it may all be very short lived. Later today if Facebook’s oversight board overturned Trump’s ban, he could be back on main street social media by tomorrow.