What's Ahead for 2021 - Rates at Bottom?

What a year it has been, and what a year we have in front of us!

A recovering economy, a new administration, and a slow, but continued vaccine rollout are setting 2021 to be like none other. 

Overall Outlook

In terms of the overall economic outlook, there is still obvious trepidation with certain factors like continued high unemployment and COVID cases, but there are also some major positive signs on the horizon. 

Interest Rates

The Federal Reserve did pretty much everything it could last year to prop the economy, including maintaining low rates. “The Fed expects to leave interest rates very low for years as the labor market heals,” reported the Wall Street Journal this week. Of course, with the year we have just had, it is impossible to what is in store next, and what measures may need to be taken in cases like continued high unemployment or growing inflation. 

We could be seeing the bottom range of rates now.

New Administration

As far as the new Democratic administration, it likely to offer more good news for the economy. As more and more commonly cited these days, including this one from MarketWatch, "While Republicans are viewed as the more business-friendly of the two major parties, economic growth is significantly slower under GOP rule."

Stimulus

Then there is the President’s proposed stimulus package, which will further help the economy stay stable while Americans to their best to recover from this past year. 

There are always more factors to consider, but those are some of the major ones to offer a positive perspective.

Have questions and want to discuss?

Contact me today, give me a ring or send me an email. I'd love to chat. 

Best, Jim