The US economy may be entering a period of significant improvements in employment. However, the labour market will be “well short” of the robust levels seen just before the coronavirus pandemic.
While there has been some positive economic news, the US economy has a long way to go before it reverses the substantial damage done by the coronavirus pandemic, according to a Bloomberg news report. In Federal Reserve chairman Jerome Powell’s testimony via video conference before the Senate Banking Committee, there were some indicators that have pointed to a stabilisation, and in some areas, a modest rebound, in economic activity.
The Commerce department reported that US retail sales rose in May by a better-than-expected 17.7%, the biggest jump in data going back to 1992. This follows a 14.7% slump in April. The May payrolls report, out on June 5, also came in unexpectedly strong. These developments led to high-yielding currencies edging lower against the greenback.
Path of recovery depends on disease containment
However, much remains unclear about the fledgling recovery. Much of the economic uncertainty comes from uncertainty about the path of the disease and the effects of measures to contain it. Until the public is confident that the disease is contained, a full recovery is unlikely.
The weeks of economic disruption as a result of the pandemic risk causing long-term scars by leaving millions out of work for an extended period and by destroying small businesses. If a small-sized or medium-sized business becomes insolvent because the economy recovers too slowly, the loss is more than just the business. Businesses are the heart of the economy and embody the work of generations.
Uncertainty creates investment opportunities
Given that there are uncertainties in the road to recovery for the global economy and containment of the virus, volatility is expected to continue in major financial markets. This is the time when there are plentiful investment opportunities for investors to invest and grow their wealth.
At TLC, we track developments in global financial markets to ensure we can achieve good financial returns on our clients’ investments. We are committed to creating opportunities for you to obtain great profits. Let’s make our investments generate more returns. Now is the best time to invest for a brighter future. We can make it happen! Prepare for better times, by letting us, TLC, to become your partner that can guide your financial decisions in years to come.