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The United States’ economy could see an above-trend growth for some time, even beyond 2021, given the level of stimulus and pent-up demand, Richmond Federal Reserve Bank President Thomas Barkin said on Thursday, per Reuters.
Additional takeaways
“Won’t specify his interest rate outlook for coming years, says fed is tied to economic outcomes, not the calendar.”
“Supply disruptions, strong demand mean inflation will rise this year but revert to 2% over time, with most businesses unlikely to shift their pricing paradigm.”
“Possible Fed could see substantial further progress on its jobs and inflation goals this year, with the expected rise in inflation “Straightforward” and hope for strong job growth in months ahead.”
“More focused on inflation expectations than the actual rate, won’t specify the level of inflation he would consider in line with fed’s plan for a moderate overshoot of 2%.”
Market reaction
The US Dollar Index showed no immediate reaction to these comments and was last seen posting modest daily gains at 02.63.