- Central banks have injected a lot of liquidity into markets (and some liquidity into the economy). This is in response to rising liquidity demand. To prevent this from becoming inflationary, central banks will need to reduce liquidity supply when liquidity demand falls. It is vital that central bank policy remains politically independent and flexible; otherwise, the outcome would be the economic illiteracy of Bitcoin (and periods of massive inflation).
- Two nominees to be governors of the Federal Reserve, Waller and Shelton, have passed the committee stage of the approval process. Waller is an economist. Shelton has in the past questioned the wisdom of central bank independence, and supported a gold standard. The nineteenth century gold standard was a fiction which created price and economic instability.
- US President Trump has warned that the coronavirus will get worse. This is not a surprise. The question is whether the president's words increase fear in the US (they are unlikely to have any effect outside of the US). Fear is what drives the economic response to the virus, and the issue has become politically partisan in the US.
- The UK government is warning firms to prepare for a no-deal exit from the EU. Markets are ignoring the government for now.