MONEY MARKET | November 2020

Taxable Money Market

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Patricia Larkin

Chief Investment Officer,
BNY Mellon CIS

The employment picture continued to brighten in October. Nonfarm payrolls rose by 638,000 during the month, and the unemployment rate fell a welcome one full percentage point to 6.9%. However, it was not all good news as the number of long-term unemployed (longer than 27 weeks) rose by over 1 million and overall employment is still well below prepandemic levels.

While the election voting may be over, it seems that the electioneering may go on for some time. We believe it is unlikely that there will be the substantial changes to current vote tallies needed to upset President-elect Joe Biden; however, the delay in the transition could certainly hamper the new administration’s goal to hit the ground running. The runoff elections for the two Senate seats in Georgia may also hamper congressional planning.

The Federal Reserve (the “Fed”), at its November 5 meeting, voted for no change in federal funds target rates and to continue their purchases of Treasury and agency mortgage-backed securities. In Chairman Jerome Powell’s press conference following the meeting, Mr. Powell continued to strongly urge Congress to take further fiscal steps to help lessen the ongoing economic damage caused by the pandemic.

The news that a large-scale study of a newly developed COVID-19 vaccine showed a 90% effectiveness rate was cheered around the world. As the Fed officials and others have said repeatedly, any meaningful return to pre-pandemic levels of economic activity will depend on people feeling safe while going about their normal business, which will require an effective vaccine. We can all view this as a major step forward toward that goal.

All investments involve risk, including the possible loss of principal. Certain investments involve greater or unique risks that should be considered along with the objectives, fees, and expenses before investing.

BNY Mellon Investment Management is one of the world’s leading investment organizations and one of the top U.S. wealth managers encompassing BNY Mellon’s affiliated investment management firms, wealth management organizations and global distribution companies. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation and may also be used as a generic term to reference the corporation as a whole or its various subsidiaries generally.

Views expressed are those of the author(s) and do not reflect views of other managers or the firm overall. Views are current as of the date of this publication and subject to change.

This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular investment, strategy, investment manager or account arrangement. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. Please consult a legal, tax or financial professional in order to determine whether an investment product or service is appropriate for a particular situation. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. BNY Mellon Investment Adviser, Inc., Dreyfus Cash Investment Strategies (Dreyfus CIS), and BNY Mellon Securities Corporation are companies of BNY Mellon. Dreyfus Cash Investment Strategies is a division of BNY Mellon Investment Adviser, Inc. © 2020 BNY Mellon Securities Corporation, distributor, 240 Greenwich Street, 9th Floor, New York, NY 10286.