(Washington) The US Federal Reserve has left its interest rates unchanged, releasing better-than-expected economic forecasts for the United States on Wednesday, 2021.
The Fed expects US GDP to grow 6.5% this year before 3.3% in 2022.
In December, he expects GDP to grow by 4.2% in 2021 and 3.2% in 2022, but before it adopts vaccine acceleration and stimulus plans ($ 900 billion at the end of December and $ 1.9 trillion last week).
Sustained support for the economy
One way or another, the central bank will support the economy “until needed”, its chairman Jerome Powell promised on Wednesday, stressing that the world’s largest economy has not fully recovered from the Govt epidemic-19.
The economy is far from targeting jobs and inflation, and it will take some time to see significant improvement.
Central Bank President Jerome Powell at a press conference
“Indicators measuring economic activity and employment have recently re-emerged, although the most affected sectors are weak,” the Federal Reserve said in a statement.
Jobs will improve
In terms of employment, he estimates that the unemployment rate will fall to 4.5% this year (down from the previously estimated 5%) to 3.9% next year.
“It is committed to using its full range of tools to support the economy during these difficult times,” the financial institution reiterated in December.
“The pace of the economy depends on the evolution of the virus, including the progress of the vaccine,” he stressed.
Finally, he insists on keeping rates close to zero until full employment is achieved in the long run.
Its forecasts, released on Wednesday, estimate that it will be necessary to wait until 2023 to return to the 3.5% unemployment rate recorded in February 2020, shortly before the epidemic spreads in the United States.
It revised its inflation forecasts for the coming years on Wednesday and expects acceleration to 2.4% in 2021, before stabilizing at 2% in the coming years.