US Fed expects growth to rise, inflation to rise in 2021, but no rate hike (FOMC minutes)
Wednesday, after a two-day meeting of Fed policymakers, the U.S. Federal Reserve said the U.S. economy, which entered recession in February 2020, was heading for its strongest growth in about 40 years, raising hopes of a rapid recovery as predicted by Wall analysts. Street after the release of a stimulus package earlier this month.
Apart from that, the FOMC minutes from March 17-18 also revealed that policymakers at the US Central Bank were expecting a surge in inflation in the near term. full recovery is coming.
Fed’s Powell expects at least 6.5% growth in fiscal 2021
On top of that, speaking at a post-FOMC press conference, confident U.S. Fed Chairman Jerome Powell said a majority of Fed policymakers expected growth of at least minus 6.5% of GDP (gross domestic product) this year due to the government’s stimulus package adding “The (stimulus) checks are coming out …
COVID cases are on the decline. Vaccination is advancing rapidly. We are committed to providing the economy with the support it needs to return to peak employment as quickly as possible. We haven’t finished yet. We are clearly on the right track.
But we are not finished, and I would hate to see us take our eyes off the ball… There are about 10 million people who need to get back to work ”. Fed officials, in tandem, had estimated that US economic growth would stay above trend for at least the next two years, predicting the economy to grow 3.3% and 2.2% respectively in 2022 and 2023 compared to a previous estimate of an average of 1.8 percent. cent long-term growth.
Meanwhile, calling Fed Powell Chairman’s post-FOMC remarks “very accommodating” given the scale of the momentum and strong data flow the US economy has witnessed in recent months, said said a managing director of the Webull trading platform following the Fed’s announcement, “There was just a lot of anxiety that has definitely inflated bond yields so far, but the Fed’s very accommodating response to a fairly solid economic outlook is a big sigh of relief.. ”