Ed Yardeni of Yardeni Research on investment tips and how much influence policies, including stimuli, have on markets.
Investors are piling up on U.S. government debt security, raising the yield on the 10-year Treasury bill to over 1% for the first time since March 2020.
10 YEARS INCOME REACHES 1.047%
With Democrats taking full control of the Senate, along with the House, spending is expected to increase.
“I think we will see much more government spending,” predicted Ed Yardeni, of Yardeni Research.
Still, he said bond yields should be even higher if it weren’t for the “politician or key power” in Washington; Fed Chairman Jerome Powell, who will maintain the flow of liquidity.
“The market is looking ahead and saying that no matter what happens, we will not have a recession in 2021, maybe 2022, but not this year,” he added.
Wells Fargo also shares the view that the economy will remain stable this year, keeping yields under control.
“A better economy this year is likely to help push interest rates up. For example, we see the yield on 10-year Treasury bills in the range of 1% to 1.5% at the end of the year, just a little higher. than current yield, ”wrote Scott Wren, senior global market strategist, in his latest research note.
Higher yields mean that banks can charge more interest, so financial stocks are rising.
| Ticker | Safety | Last | change | Change % |
|---|---|---|---|---|
| GS | GOLDMAN SACHS GROUP INC. | 285.55 | +14.62 | + 5.40% |
| JPM | JP MORGAN CHASE & CO. | 131.55 | +5.90 | + 4.70% |
| BAC | BANK OF AMERICA CORP. | 32.15 | +1.89 | + 6.25% |
| WFC | WELLS FARGO & COMPANY | 32.69 | +2.16 | + 7.08% |
JANET YELLEN MADE MILLIONS IN SPEAKING RATES
Powell, whose four-year term ends in 2022, will work closely with the new Treasury secretary, Janet Yellen, who was also the first woman to head the Federal Reserve and will take over from Steven Mnuchin.
Last month, Powell was asked if he had spoken to his former Fed colleague about politics.
“Actually, I only spoke to former President Yellen to congratulate her for being nominated and just to say that I look forward to working with her. You know, I worked very closely with her for five years before she left and I kept in touch “, he explained, adding,” I didn’t discuss, you know, the policy with her. And I, I’m not going to do that until it is confirmed, “he said.
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Democratic US Senate Candidate Jon Ossoff
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As for the Georgia election, Democrat Jon Ossoff said he won the race back to the Georgia Senate on Wednesday morning, when Republican David Perdue’s campaign said it would “exhaust” all legal options to ensure that only votes ” legally expressed “are counted.
Fox News Decision Desk has yet to call a race winner. Follow the LIVE updates here.