Stimulatory Measures – 3rd Quarter September 2020

Stimulatory measures are typically used by governments and central banks as a package of economic measures put together to stimulate a stagnating economy with the objective being to reinvigorate the economy and prevent (or reverse) a recession by “stimulating” employment and spending.

In the U.S. markets rose in Q3 on the back of continuing facilitating Federal Reserve monetary policy and early signs of a pickup in economic activity. The Federal Reserve will now employ average inflation targeting in setting interest rates which is indicative of prolonged liquidity easing. The provision of additional fiscal stimulus measures remains deadlocked as the parties, Democrats and Republicans, dispute as to the quantum of the stimulus to be provided.


investment report third quarter