MFF Economic Outlook: 4/21/20

Written by: Elizabeth Salas Evans, President & CCO at Cayena Capital Management; MFF Visiting Scholar

April 21, 2020

The United States (U.S.) is the epicenter of the world for COVID-19, surpassing forty four thousand deaths. The Trump Administration plans to suspend immigration to the U.S., and with the support of Congress, reached a deal this morning for an additional four hundred and fifty billion dollars to help support small businesses, hospitals, and expanded testing. This additional stimulus package is expected to fill the gap in providing money to small businesses who did not receive funds prior to the depletion of the last stimulus package. Oil markets are experiencing their worst week in history, with Crude Oil dropping over one hundred and sixty percent as economies grapple with excess supply and nowhere to store the oil that has been extracted.

President Trump and his administration are exploring ways to financially support the U.S. Oil & Gas Industry, while preventing companies from extracting more oil, and while staying in operation. This morning’s report out of the National Association of Realtors (NAR) saw a decline of eight and a half percent in Existing Home Sales for the month of March. With growing protests across the U.S. as frustration and anxieties mount for an end to the current stay at home orders, late last week the Trump Administration unveiled a three phase reopening plan for states and local governments. As states and communities experience varying impacts from COVID-19, there will be a lot of attention following any reopening to identify any potential resurgences that may occur.

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