The US Treasury Secretary Steven Mnuchin said on Monday in CNBC that now is not the time to worry about the federal deficit or the Federal Reserve balance sheet to delay additional Covid-19 relief. His remarks are related to the negotiations of the additional corona stimulus package for households and small and medium-size entrepreneurs.
According to him these unprecedented times warrants extraordinary stimulus from Congress and the Fed. His comments are also critics towards the opinions that improving jobs and housing data would relax the need for additional stimulus to combat the pandemic and get the economy back to pre-pandemic levels.
Financial markets went up on Monday trading in New York and Dow Jones index closed up 1,18 % to 27.993,33 points. Nasdaq-index closed up 1,87% to 11.056,65 points and larger S&P 500 index closed up 1,27% to 3383,54 points.
News of possible corona vaccine at the end of this year, was noticed positively in the markets. Also many mergers news lifted the stocks. For example Oracle jumped 4 % after the news that it would be the winning bidder of TikTok´s US operations.
The Federal Reserve is having its policy meeting on Wednesday followed by the Bank of England and Bank of Japan on Thursday.
In Europe, the FT-SE 100 index was nearly flat, down 0,10% to 6026,25 points and Germany DAX-index closed down 0,07% to 13.193,66 points.
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