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Many countries worldwide have doled out billions of dollars in financial aid and stimulus to keep the economy afloat. Director of Global Macro, Jurrien Timmer, discusses possible scenarios that may occur as U.S. national debt is projected to increase. Jurrien says the Fed is forced into buying more and more debt to keep interest rates low, especially if those interest rates want to rise because of inflation. He notes that there may likely be a lot of supply coming in soon because of the American Jobs Act. This may lead to a trillion dollars of debt every year. Thus, the Fed would have to buy half of that debt and then in addition to that, buy some of the additional stock. Jurrien also adds although China owns a large portion of U.S. debt, he is unconcerned because the U.S. buys Chinese goods, and the proceeds are invested in U.S. treasuries. Follow along with Jurrien’s charts on Twitter: @TimmerFidelity.
By Fidelity Canada4.9
88 ratings
Many countries worldwide have doled out billions of dollars in financial aid and stimulus to keep the economy afloat. Director of Global Macro, Jurrien Timmer, discusses possible scenarios that may occur as U.S. national debt is projected to increase. Jurrien says the Fed is forced into buying more and more debt to keep interest rates low, especially if those interest rates want to rise because of inflation. He notes that there may likely be a lot of supply coming in soon because of the American Jobs Act. This may lead to a trillion dollars of debt every year. Thus, the Fed would have to buy half of that debt and then in addition to that, buy some of the additional stock. Jurrien also adds although China owns a large portion of U.S. debt, he is unconcerned because the U.S. buys Chinese goods, and the proceeds are invested in U.S. treasuries. Follow along with Jurrien’s charts on Twitter: @TimmerFidelity.

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