I have my doubts

More Fiscal Support ‘Incredibly Important’ 

It’s “incredibly important” the U.S. deliver another round of fiscal policy measures to aid the economy as it weathers the coronavirus pandemic, said Federal Reserve Bank of Chicago President Charles Evans.

“Fiscal policy has been unbelievably important in supporting the economy during the downturn that we’ve been experiencing,” Evans said in an interview Sunday on CBS’s “Face the Nation.”

“That continues to be important because we’ve not got control over the virus spread. I think that public confidence is really important, and another support package is really incredibly important,” he said.

“As you look at the economic outlook there are some negative scenarios and the ones that are most pessimistic involve not supporting state and local governments,” he said. “States have to balance their budgets. They are experiencing reduced tax revenues and so there will be employment reductions.”

The dollar is back down, rates are low.  So this tells me foreign buyers have maxed out their currency insurance on dollar bets.  That means the Fed tax comes from domestic savers, otherwise known as Antificants.

Maybe a one trillion package, but the plan looks to put at least three more trillion onto the Fed balance sheet. That is not inflation, that is deflation.