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Goldman Sachs (GS) recently joined the league of how US coronavirus (COVID-19) fiscal stimulus will affect the world’s largest economy.

The American banker initially made an easy comment suggesting the rally in the US debt-to-GDP ratio and the economic signals flashed by the same.

However, the following read is an interesting one that hints at a more reliable, also stable, catalyst for the debt burden, i.e. real interest expense as a share of GDP adjusting for inflation. The report highlights a discussion between two financial analysts while saying, “That measure is currently at a more historically normal level.”

This indirectly suggests no reflation fears and a sustained favor for the easy money policies. However, the market sentiment seems to await major catalysts and may look towards today’s US President Biden’s speech for the same.