Speed of economic recovery and Fed’s policy is most important to investors

Growing numbers of people infected by coronavirus in some parts of the United States lead to increasing nervousness on markets. A possible second wave of the pandemic would be fatal not only to American economy.

US economic recovery

According to a survey by Jefferies Financial Group, coronavirus pandemic represents the third most important factor, which affects investors‘ decisions on securities, and more than 12% of respondents are aware of the pandemic. Every second respondent answered that shape and speed of US economic recovery plays a key role.

More than 30% of questioners believe it’s important what policy the Federal Reserve system practices. Analysts reported that in recent weeks markets “blindly follow the Fed, while ignoring macroeconomic data”. However, as the economic reality becomes relentless, investors may change their approach to each factor. As they are most affected by the speed of economic recovery, they may begin to focus on the progress of coronavirus pandemic. The pandemic and state of US economy seem to be connected.


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