Page 11 - ISQ October 2020

VOTE VOTE VOTE VOTE VOTE VOTE VOTE VOTE VOTE
VOTE
VOTE VOTE VOTE VOTE VOTE VOTE VOTE VOTE VOTEVOTE VOTE VOTE VOTE VOTE VOTE VOTE VOTE
VOTE
VOTE VOTE VOTE VOTE VOTE VOTE VOTE VOTE VOTE VOTE VOTE VOTE VOTE VOTE VOTE VOTE
VOTE VOTE VOTE VOTE VOTE VOTE VOTE VOTE VOTE VOTE Race for the White House: VOTE
VOTE VOTE VOTE VOTE VOTE VOTE VOTE The Home Stretch

The Fed’s employment goal has been made broad-based and
inclusive. In a break from the past, the Fed will no longer raise
short-term interest rates pre-emptively to fight inflation when
the unemployment rate is low. There is no specific target for the
unemployment rate, as officials recognise that low unemploy-
While the increase in government
ment substantially benefits low- and medium-income “
communities.
borrowing is worrisome to many, the
The pandemic now appears likely to be a more long-lasting real danger is not doing enough to
economic event, requiring a restructuring of significant parts of
the economy over the quarters ahead – and elevated job losses support the economy in the near term
remain a key risk. While the Fed has been critical in providing and ending support too soon. ”
liquidity, it can’t offset the economic impact of an ongoing pan-
demic. Further fiscal support will be needed, regardless of the
November outcome.

Federal Debt Held by the Public, 1900 to 2050

200% Projected

Percentage of GDP 150% World War II Great

Pandemic
100%

Great
50% Depression Recession
World War I

0%
1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050

Federal Debt Held by the Public

Source: Raymond James Investment Strategy
All expressions of opinion reflect the judgment of the author and are subject to change. Past performance may not be indicative of future results.

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