As one of the world’s leading providers of cross-border business payments, Western Union Business Solution, the payments arm of the Western Union Company (NYSE: WU) is transforming how businesses can expand globally through one of the largest and most diverse payment networks in the world. The latest installment of thought-leadership from Western Union Business Solutions highlights the key developments of Biden’s first 100 days in office.

Joe Biden became the 46th President of the United States on January 20, 2021. The first 100 days of any US president tends to garner significant attention. The so-called honeymoon phase of a new presidency can help shed light on how the new resident of the White House is doing compared to promises made during the election campaign. 

So how is Joe Biden faring after the 100-day mark of his presidency? One hundred days after taking over from Donald Trump, who ended his term with a popularity rating of 34 per cent, Joe Biden maintains a popularity rate far above 50 per cent during first steps of his mandate as president (see below). But what about the effects of his policy in the current context?

More popular than his predecessor

Last data as of April 21, 2021. Source: Gallup, Western Union Business Solutions

The insight analysis starts with a review of how President Biden so far has combated the pandemic that spurred the worst year for the world’s biggest economy in decades. The slam from the COVID-19 pandemic was the driving force behind the US economy contracting by 3.5 per cent in 2020, a record weak performance that dates to 1946. 

The spotlight on America’s 46th president also compares his performance against his predecessors early in their administrations. The research also covers the unprecedented monetary and fiscal stimulus that Congress and the Federal Reserve approved to tackle the health crisis and how these policies affected the foreign exchange market. 

Briefly, US dollar welcomed warmly the first steps of Biden and positive side effects of the massive fiscal stimulus on US outlook. After a weak performance during the second semester 2020, greenback roared back and registered in Q1 its best performance since almost three years (+4 per cent against a basket of currencies including euro and UK pound). If market frenzy about a likely early monetary tightening in US abated during springs, hot debate about inflation suggests some roller-coaster and uncertain volatility ahead of us. 

Range of projections: EUR/USD 

Last data as of May 22, 2021. Source: Refinitiv, Western Union Business Solutions

However, despite this renewed attractiveness, opinions are divided as to the future. Some predict a sharp rise in US rates and an appreciation of the dollar, while a strong recovery in the global economy could push investors to favor other currencies.

The further insight analysis addresses key questions like: 

• How has unprecedented US stimulus impacted America’s main growth engine: The consumer?
• Who will pay for America’s lavish, budget-ballooning fiscal support?
• Has America abandoned its protectionist trade policy?
• Will Mr. Biden help or hurt diplomatic relations between Washington and Beijing?
• What has America’s new administration meant for Wall Street?
• What does the current state of the US dollar suggest about the Biden administration’s economic agenda?

Download a copy of the full report by Western Union Business Solutions here.

If you would like to receive more information on how Western Union Business Solutions (Malta) can help your business spend less time managing international financial transactions and more time growing your business, don’t hesitate to contact us here. 

*A study conducted by Western Union Business Solutions analyst, Guillaume Dejean, Senior Foreign Exchange Market Analyst.  

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