US Economy Will See A Market Growth In 2021, According To Fed Members
“There are of course risks to the upside and downside, but it should be a very strong year from a growth standpoint…Longer run we do not have to raise revenue to support permanent spending that we want to do.”, Federal Reserve Chairman Jerome Powell said on Wednesday.
Both Jerome Powell and Treasury Secretary Janet Yellen spoke about the economic response to the coronavirus and they believe that the U.S. economy will see growth in 2021 thanks to the monetary stimulus issued by Biden which is supposed to set the U.S. economy to the pre-covid path.
According to Janet Yellen, banks have improved capital positions and are allowed to buy back their own shares.
“I have been opposed earlier when we were very concerned about the situation the banks would face about stock buybacks,” Yellen said. “But financial institutions look healthier now, and I believe they should have some of the liberty provided by the rules to make returns to shareholders.”
Fed’s Daily Says US Economy ‘Long Way’ From Goals
President of San Francisco Federal Reserve Mary Daly said on Wednesday that the U.S. economy is “a long way” from its current goals and she noted a rise in wages suggesting support on the monetary gas pedal
Mary Daly declined to say her point of view of the appropriate timing for the Fed’s first interest rate hike and she told the reporters that it’s more important that citizens understand the Fed won’t raise rates until unemployment status sees a decline. She said that it’s important now for people to be patient, “The important thing right now, I think for everyone, is a healthy dose of patience.”
Chicago Federal Reserve President Charles Evans said on Wednesday
Chicago Federal Reserve President Charles Evans said on Wednesday that the central bank will set its monetary policy based on the economic outcomes and until it sees actual improvements, it will not reduce monetary policy accommodation, Reuters said
“We’re looking for actual improvement in the economy and inflation to get back up to our dual mandate objectives of maximum inclusive employment and 2% inflation on average,”
Charles Evans forecasts that the U.S. economy will grow about 6.5% this year and unemployment will reduce to 4,5% and inflation will fall back after a temporary increase