Timely & Relevant News: This Is Not a Typical Recession

Investors held their breath on Monday morning to see if markets could hold their gains from the previous week. Markets stayed optimistic in the green throughout Monday, but traded lower on Tuesday.

Jerome Powell is the chairman of the Federal Reserve. In an interview on The Today Show, Powell spoke to some reasons why he does not view what America is experiencing as a typical recession. Rather, he states that, “we may very well be in a recession, but I would point to the difference between this and a normal recession.” Powell continued, “There is nothing fundamentally wrong with our economy.” Powell explained that America’s ability to slow the spread of this virus will inevitable dictate how the economy responds. If the virus is able to be brought under control, Powell states that, “there can also be a good rebound.”

Lots of people are asking for concrete answers from our experts around the country. Though it may be frustrating at times, experts are still only able to take their best educated prediction on how the economy is going to respond once we are able to recover from this pandemic. What we can take comfort in is that our economy was strong at the beginning and the Federal Reserve has taken aggressive steps to make sure that businesses will have what they need, once they are able to open up their doors again for business.

We are all in this together! Stay safe.

If you have any specific questions, hesitations or would like to discuss your own investment strategy or financial planning needs, we welcome you to call us at 302.234.5655 or email us at  contactus@covenantwealthstrategies.com to set up time to discuss further.