Independence Day celebrations will wind down shortly, but many officials in Washington, D.C. want to continue the party. They propose massive displays of pyrotechnics, never seen in the United States except in wartime. Washington’s fireworks, of course, are in the form of huge budget-busting government spending.
Monetary and fiscal issues normally have been somewhat predictable, but more than a year of Covid turmoil has jettisoned predictability right out the window. Further, Congress and the Federal Reserve, charged with controlling government spending and monetary policy, seem to have abdicated that control. Their absence raises difficult questions for investors. This issue of Viewpoint seeks to provide very tentative answers.
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Thomas Goho, Ph.D. is formerly the Chief Economic Consultant for Stephens Inc. He also served as the Co-Director of Stephens University at Wake Forest University.