Rapid Recovery on in US Economy, But Far From Fed’s Goals
The US economy is improving and yet still far from full recovery. The COVID-19 pandemic has brought an economic halt that created a crisis for all workers, particularly for lower-wage earners, women, non-white workers, and those with less education. Cleveland Fed President Loretta Mester said in a speech on Thursday, “while the economy is still far from our policy goals of maximum employment and price stability, progress is being made and the economic outlook is brightening”.
According to Mester, the price increase is temporary as businesses struggle with the delays in the supply chain and prices rebound from the lows. She also mentioned that the price increase would potentially curtail in the near future and economic challenges will be resolved.
Mester mentioned, “I’m not too concerned about inflation moving too high at this point”. She expects the US economy to have a growth of 6% or more this 2021. She added that the unemployment rate is anticipated to decline to 4.5% or less since administering the vaccine has already started. This will make it safe for everyone to go back to work, which is a significant part of the economic recovery.
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