Corona crisis – USA before full recovery

Fed central banker Thomas Barkin is optimistic that the US economy is “close to full recovery” after the corona pandemic. “Vaccines are on the rise, case numbers and hospital stays are falling. Excess savings and fiscal incentives should help finance the pent-up consumer demand created by the vaccines and warmer weather,” he said on Sunday evening (local time ).

He is therefore confident that the economy will recover soon, said Barkin, monetary guardian of the Richmond Federal Reserve. The recently implemented stimulus package of 1.9 trillion dollars (1.6 trillion euros) has also caused an increase in household incomes and savings, which is helping to offset the massive loss of jobs.

Once the pandemic is over, however, the government should focus on “letting market forces act” so that politics don’t “hinder the creation of tomorrow’s businesses as it tries to protect today’s businesses,” warned Barkin. The Fed announced last week that it would hold on to low interest rates for longer despite the rosy economic outlook. (Reuters)

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