Hi, I'm Steve Chiavarone, Portfolio Manager and Equity Strategist at Federated Hermes.
How will the recent weather disruptions, seen as far south as Texas, impact economic recovery and job growth?
The weather disruptions in the central and southern part of the country have obviously had a terrible human toll, and in the short run, they do affect things. They certainly impact the job markets. We saw that in the pick-up in unemployment claims. They're certainly slowing down the process of vaccination, which is, which is not positive, and is a key driver of economic recovery. The vaccination, that is. And also, it's causing untold damage to energy infrastructure through the center of the country. In the medium to long term, however, the big drivers of what it, what's going on with the economy is that you've got a lot of stimulus supporting economic activity. You have the vaccinations, and the, or the widespread vaccination, allowing people to leave their homes in greater numbers. And you've got additional low rates in accommodative policy that is taking pent-up consumer demand and beginning to unleash it, but we think going to unleash it in a much more significant way over the coming weeks and months. That really isn't changed, so the short term economic activity going, or coming out of the South and central part of the country certainly taking a hit. We're certainly seeing it in the data. We really don't think, despite the significant human toll, that this is in any way likely to derail the economic recovery or the market's continued upward ascent.
Disclosure: Views are as of 2/23/2021 and are subject to change based on market conditions and other factors. These views should not be construed as a recommendation for any specific security or sector. Federated Global Investment Management Corp. 21-30120 (3/21)