Search ForexCrunch

Federal Reserve Charles L. Evans has stated that he is hard-pressed to see $1.9tln fiscal package leading to economic overheating.

Instead, he said that it could support inflation and inflation expectations.

Earlier, it was announced that ”the Democratic-controlled US House of Representatives approved a budget outline on Wednesday that would allow them to pass President Joe Biden’s proposed $1.9 trillion coronavirus aid plan without Republican support,” Reuters reported.

The Senate will now vote where all eyes will be.

Market implications

The US dollar has been in the hands of the bulls as markets bank on a faster economic recovery under the Biden administration and on better than expected data of late.

However, the bulls are struggling at resistance and if the package is perceived overkill in the markets, the downside will be once again compelling.

DXY daily chart