Federal Reserve policymakers are optimistic about the U.S. economic outlook as more Americans are vaccinated and government aid gets to households and businesses, and they are not going to stand in its way.
Richmond Fed President Thomas Barkin compared the pandemic economy to a roller-coaster pausing just before a thrilling high-speed plunge.
“The final stretch should absolutely be something, as excess savings and fiscal stimulus fund pent-up demand from consumers who are exhausted from isolation and who will be freed by vaccines and warmer weather,” he told the Montgomery County Chamber of Congress in Maryland on Tuesday.
With nearly $6 trillion in government relief since the start of the pandemic and super-easy Fed policy, he said, he is “very bullish” on growth this year and expects spending to stay strong in 2022 and 2023.
Atlanta Federal Reserve Bank President Raphael Bostic said he is watching for “upside risks” to the economy’s trajectory.
“We could see a burst of activity and performance coming into the summer which could lead us to see even more robust recovery,” Bostic told the Atlanta World Affairs Council. “A million jobs a month could become the standard through the summer.” Read more