Policymakers at the US Federal Reserve expressed confidence that faster economic growth would take place there after going through a difficult period over the past year due to the global Covid-19 pandemic beginning in December 2019. The optimism was expressed based on the current situation in where the support given by the White House administration led by Joe Biden began to show positive results on important economic data.
The expansion of vaccination programs, various forms of direct assistance to the people, economic stimulus packages to help the recovery of the business and manufacturing sectors as well as employment data which is the full focus of the government will certainly give a more aggressive economic boost this year. President of the Richmond Fed Bank, Thomas Barkin made a comparison of the current economic situation with the roller-coaster movement.
The economy pauses before resuming travel at maximum speed, much like a roller-coaster movement. “The final journey of the economy will definitely involve surplus savings and will lead to a comprehensive fiscal stimulus into the economy. Consumers who have been confined will definitely spend a lot after this, especially when the vaccination program is expanded to give confidence in the safety of getting out of the house, especially in the summer, "he said during an interview with the Montgomery County Chamber of Cingress in Maryland yesterday. .
A total of US $ 6 trillion in funds has been injected into the economy by the White House administration since the start of the pandemic and the FEDS's very flexible monetary policy, he believes US economic growth this year is very bullish and expects to continue until 2022 and 2023. In terms of monetary policy, the FEDS remains adamant that interest rates will remain close to zero until the economy fully recovers and has set an inflation target of 2% before any aggressive policy changes take place.
