I’m sure you’ve heard that the House recently passed the Senate another round of stimulus to try and counteract the economic effects of the COVID-19 pandemic. The new stimulus package could narrow income eligibility to receive a stimulus check, while expanding other types of eligibility and broadening unemployment benefits.1,2
Many are left wondering how the additional stimulus package will affect the economy and the financial markets down the line. The volatility seen in 2020 has continued into 2021, while some sectors experienced a boom as The Federal Reserve guided short-term interest rates at-or-near zero.3
But remember, long-term rates have been trending higher for the past seven months. Traditional 30-year-mortgage rates increased to 3.23%, which is the largest single-week increase in a year. Because mortgage rates are tied to 10-year Treasury rates, an increase may indicate that the specter of inflation is looming.3
We’re paying close attention to the markets, and we’ve factored inflation changes into your investment strategy. But as always, if you’re concerned about something you’ve seen in the news, I’m happy to talk anytime.
Contact me with questions or comments.
Damian J. Sylvia
Retirement Income Solutions
Office: 732-508-6044
Direct: 732-284-0902
Email: Damian@MyFinancialSolution.org
Website: RetirementSolutionsNJ.com
Sources:
- CNBC.com, March 3, 2021
- CNN.com, March 3, 2021
- Axios.com, March 3, 2021