Capital Markets Summer 2020

I

Sporadic Stimulus → Coordinated Intervention Lasting Change

• We have entered a period of heightened government intervention, in our view

I

• In this environment, fiscal and monetary policy may work more closely together, essentially monetizing debt issuance

II

U.S. Fiscal and Monetary Stimulus in Response to Coronavirus

$3.0 Trillion

III

$2.9 Trillion

Fiscal and monetary policy working in tandem

IV

V

U.S. Fiscal Stimulus

U.S. Federal Reserve Purchases

VI

Source: Federal Reserve, Deutsche Bank, and Alger. Fiscal Stimulus includes the CARES Act, the Paycheck Protection Program and Health Care Enhancement Act, and the Families First Coronavirus Response Act. Federal Reserve purchases is the increase in Federal Reserve assets March through June 2020.

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