America expects an economic recovery in 2021
Jerome Powell, Chairman of the US Federal Reserve, expressed his optimism about the emergence of an accelerated improvement in his country’s economy for the remainder of 2021, driven by the continued distribution of vaccines.
And he said in a statement issued by his office, that the distribution of vaccines in various states contributed to a rapid recovery in monetary and fiscal policy, and boosted employment, at a time when the gross domestic product is on the right track.
The American economy was badly affected by the repercussions of the outbreak of the Corona virus during the past year, before it showed an improvement in several indicators, including the improvement in household spending, and the return of the housing, investment and industrial sectors to activity again.
Powell considered that the Fed is currently pursuing a monetary policy aimed at promoting a strong and stable economy that can improve economic outcomes for all Americans, and inflation has increased significantly in recent months, which is an indication of improved consumption, but he saw that the epidemic still poses risks to the economic outlook, and progress in Vaccines limit the spread of the virus, but the emergence of new strains disrupts the local economy.
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Powell explained that the injection of nearly two trillion dollars into the local economy contributed to accelerating the economy’s return to the path of growth during the current year, expecting unprecedented growth in decades. Last April, the International Monetary Fund said that it expects a faster recovery than expected in the American economy. Thanks to Corona vaccines and recovery plans, the Fund expects the US economy to grow by 6.4% this year, and 3.5% in 2022.
The US economy contracted 3.5% for the whole of 2020, according to Commerce Department data, less than half the International Monetary Fund’s forecast of a 6.6% contraction.