Key highlights:

• The surge in COVID-19 cases and the ongoing ramping up of containment measures in response is causing a slowdown in growth, with the risk of a contraction in quarterly GDP.
• At the same time, regulatory approval for vaccinations to commence has improved the medium-term outlook.
• The Fed will likely move to ‘qualitative outcome-based guidance’ for its asset purchases at this month’s meeting, with a chance that it also focusses its purchases more on longer dated Treasury securities.

Find out more in NAB’s US Economic Update – December 2020