Written by: Elizabeth Salas Evans, President & CCO at Cayena Capital Management; MFF Visiting Scholar
April 1, 2020
Last week’s $2 trillion emergency stimulus relief bill passed unanimously by the U.S. Senate, the U.S. Federal Reserve’s commitment to inject $1.5 trillion in order to provide liquidity, AKA cash to money markets and other short-term credit instruments is proving to not have been enough. In addition, this week, President Trump has called for an additional $2 trillion as an infrastructure package in order to provide more support to the U.S. economy as COVID-19 continues to spread and death tolls rise.
As demand for medical supplies increase, there is now a high demand for medicine that has fallen short in supply and is needed for the operation of ventilators in hospitals within the U.S. The supply chain challenges that the global economy is currently experiencing is expected to get worse as this global recession worsens. With unemployment claims reaching historical levels of over 3.2 million jobless claims, the below chart reflects the U.S. Unemployment Rate and the percentage of people enrolled in college between the ages of 16-24. During the 2008-09 Financial Crisis, the number of people who enrolled in college also increased as opportunity to obtain additional education became available.