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Monthly Cash Review - May 2021

The economic outlook has become more positive over the past month as the US continues to move towards a full economic reopening. Unfortunately for cash investors, the Fed has no intention of easing their accommodative monetary policy any time soon.


We’ve aggregated various comments from Federal Reserve (Fed) officials and the Secretary of the US Treasury describing their views on inflation and policy rates.

  • Treasury secretary Yellen said the jobs report is stronger than the numbers suggest, and she doesn’t think that unemployment benefits are hurting hiring. She noted chip and lumber shortages affected jobs last month, as well as health concerns and lack of child care being other noteworthy issues. She added one should never take one month of data as an underlying trend.
  • Fed’s Evans said that he expects continued strong employment growth over the rest of the year, with the hope that the April jobs report is a one-off. He warned that we should distinguish between persistent and transient inflation and remarked that inflation rates of 2.5% do not bother him as long as it’s consistent with an overall average of 2% over some period of time.