The pandemic accelerates.

COVID-19 cases, hospitalizations, and deaths are continuing to skyrocket in the United States and around the globe. While help is coming with treatments and probable vaccine distributions, we have quite a ways to go. Three different vaccines have shown high levels of efficacy, which has led to a buoyant market over the past four weeks. The market is looking forward to a return to more normal times, after effective vaccine distributions are made to Americans and the world at large.

COVID-19 stimulus pressure.

Congress is set to reconvene this week, but the prospect of a new stimulus bill being passed between now and the swearing in of the new administration seems unlikely. In the meantime, Steve Mnuchin, our current Treasury Secretary, is actively winding down COVID-19 support programs, leaving many American businesses with fewer financial safety net tools to start the new year.

Biden administration takes shape.

Joe Biden will likely be working with a Republican-led Senate to start his presidential term. The economic impact of a coming divided government? The current tax structure should remain in place. Additional stimulus measures will hopefully be passed, likely with a newfound emphasis toward Republican fiscal responsibility. One more market soother of note – the apparent selection of Janet Yellen as U.S. Treasury Secretary. A perceived return to more traditional operations in the U.S. government seems to be taking shape.