The IMF upgraded the forecast of global economic growth to 6% on year for 2021 from a 5.5% increase in the previous forecast.
Rough debates are looming in the US Congress as lawmakers are due to discuss a corporate tax hike from 21% to 28% proposed by Joe Biden in the new stimulus plan. This measure is a must-do to ensure the budget spending of 2.2 trillion dollars on infrastructure.
Yesterday, Jeff Bezos, CEO of the world’s largest online retailer Amazon, assured the community that not all top entrepreneurs are against this controversial economic move. The wealthiest man in the US supported the new stimulus plan by Joe Biden, including a higher tax on corporate profits. He admitted that such a measure will back massive public investments in the national infrastructure.
The market expects the US Fed to maintain its stance on monetary policy. Yesterday, Federal Reserve Bank of Dallas President Robert Kaplan confirmed that it is too early for the regulator to scale back stimulus measures.
The key US stock indices declined moderately yesterday. The Dow Jones slipped 0.3% to 33,430 points. Experts project the Dow Jones index to consolidate in the corridor of 33,100 – 33,700 points.
The US dollar extended its fall against major currencies yesterday. Now its index is hovering at near a two-week low. From the technical point, the index has found strong support at about 92.30. Now, analysts reckon that the US dollar will either stay flat or rebound. The index is expected to trade in the corridor of 92.00 to 92.65.
The US dollar is holding the upper hand over its Canadian rival. Being a commodity currency, the loonie was hurt by a drop of oil prices. Today the USD/CAD pair is trading at near 1.2590.
Bitcoin is the hero today as the hash rate of the number one cryptocurrency has hit an all-time record. However, this will hardly make a serious impact on the Bitcoin price in the short term. Indeed, the inflated price and a deficit of chips provide proper conditions for the mining even on ASIC devices of 2014. Bitcoin shed over 2% in the last 24 hours to trade at about 57,000 dollars per token in the second half of the day. At the same time, investors are shifting focus towards altcoins away from Bitcoin. Lately, the crypto market capitalization briefly touched 2 trillion dollars. Crypto investors are worried about a rapid rally of altcoins because it means that merits of Bitcoin are fading. Meanwhile, Bitcoin is likely to be trapped in the corridor of 56,700 to 58,600 dollars today and tomorrow. Analysts do not foresee a breakout of the psychological level of 60,000 dollars in the near future.
The US stock market is taking a break after a two-day robust rally. Treasury Secretary Janet Yellen who is also an ex-Fed Chair advocates for the new stimulus plan by Joe Biden. She pins hopes on almost full employment in the US economy in 2022. Importantly, Janet Yellen believes that fiscal stimulus should not be cancelled prematurely not to spark off a new crisis.
Meanwhile, the US authorities are pushing ahead with the mass vaccination. Yesterday President Joe Biden reported that 150 million Americans had been vaccinated since his first days in the office. All adult people should be provided with vaccines by April 19.