Johnson will follow Roosevelt's method to promote the economy, U.S. local economic activity resumes, putting gold downside risk

Johnson will follow Roosevelt’s method to promote the economy
On Monday, the British Prime Minister Johnson promised in an interview with the radio that he would follow the example of former US President Roosevelt during the Great Depression in the United States to boost the economy by drastically expanding government spending. Johnson also threatened to increase investment significantly. In addition to the £133 billion bailout plan previously launched, it will continue to roll out more plans to help stabilize business and assist individuals. Throughout the interview, Johnson did not indicate what form he would use or how much he would use to boost the economy. But on the same day, the UK Debt Office stated that it will sell £275 billion in debt between April and August, which is double the amount of debt issued in the previous fiscal year to meet the government’s need for mobilization of funds.

U.S. local economic activity resumes, putting gold downside risk
On Monday, because Powell’s speech conveyed his optimistic view on the recovery of economic activity, which boosted the market’s optimism, and investors hoped that the stimulus plan will support the economic rebound, and the improvement of economic data will promote the rebound of US stocks, which limits the rebound of US stocks. The rise of gold. However, because of the risk of the second spread of the epidemic, more US states have extended their plans to restart the economy, which may exacerbate the risk of economic downturn.

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