The first FOMC meeting for 2021 came and went in an uneventful manner, interest rates stayed the same, which was expected and a consideration for a hike is only in play once the economy has recovered. Asset purchasing is expected to continue at $120 billion per month and no expected date of tapering given. There was a lot of emphasis put on the virus with the Fed expecting an upturn in the economy as the vaccine rolls out. Biden also ordered an additional 200 million vaccines to accelerate economic recovery to get the US back to normality.

The US economy is still a long way off from a full recovery, the Fed is targeting 2% inflation, but it will more than likely become a risk the longer it takes for the economy to recover. Unemployment will still be a concern because of the virus with real unemployment expected to be closer to 10%.

Focus for today will be mainly on the US GDP figures coming out this afternoon alongside Unemployment claims.