Mexico | ¿What to expect from the Federal Reserve and the markets?

This week will be of great interest to the global financial markets. As of today begins the annual meeting of Jackson Hole -organized by the Federal Reserve of Kansas City- that brings together financial and monetary authorities of the world

Key points

• Key points:
• By the end of March 2020, it was clear that the Covid epidemic was going to have a global impact, financial markets came to a standstill
• It was a very serious episode of risk aversion and general liquidity that resulted in the fall of stock markets and depreciations of most currencies against the dollar that could even have resulted in a collapse of the credit markets
• This did not happen thanks to the decisive measures of the central banks of developed countries, in particular the Fed, which not only reduced the monetary policy rate to zero, but also began to inject liquidity into the markets through the purchase of bonds, both Treasury and mortgage
• After having fallen 3.5% in 2020, that country's GDP has already recovered the level it had before the pandemic and is on track to grow 6.5% this year

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