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Federal Reserve is optimistic on US economy

The Federal Reserve considers that the US economy will improve in the year 2021

23.Feb.21 5:54 PM
By Abigail Richards


Federal Reserve is optimistic on US economy
The US Federal Reserve expects the economic situation in the United States to improve during this year. Despite this, the US labor market is still far from recovering from the downturn caused by the coronavirus pandemic, warned President Jerome Powell at a two-day hearing before Congress on the policies of the dome of central banks.

"While we should not underestimate the current challenges, developments point to a better outlook later this year," Powell said. "In particular, the progress made in vaccinations should help to accelerate the return to normal practice."

The Federal Reserve is currently pumping $ 120 billion into the US economy every month through buy-up programs to keep the coronavirus crisis going. Powell reiterated that this stimulus program will remain in its current size until substantial steps have been taken towards optimal employment and the inflation target of 2%.

Powell was also critical of the way in which the recovery started was divided within American society. "The high rate of unemployment is particularly severe among low-income and African-Americans, Latin-Americans, and other minorities," he said. "The economic disruption has turned many lives upside down and caused great uncertainty about the future."

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