Progress on vaccinations has continued to strengthen indicators of economic activity and employment, the Federal Open Market Committee said today, adding that while the sectors most adversely affected by the pandemic have shown improvement, they have not fully recovered.
Led by gains in consumer spending, economic activity is expanding at a historically rapid pace, according to members of the Federal Open Market Committee.
Risks to the economic outlook remain even as progress on vaccinations will likely continue to reduce the effects of the coronavirus pandemic, the Federal Open Market Committee said today, adding that the path of the economy will significantly depend on the course of the virus.
The economic projections coming out of the Federal Open Market Committee’s April meeting were slightly stronger than the group’s March forecast. In minutes from the committee’s April 27-28 meeting, members said that real GDP growth was projected to post a “substantial increase” this year, along with a “rapid decline” in the unemployment rate.
Consumer prices for April showed a 4.2% year-on-year increase today, outpacing analysts’ expectations. What does rising inflation mean for the path of the economy in 2021?
Headline inflation measures could move above the Federal Reserve’s 2% long-run target in the coming months, due in part to supply-chain bottlenecks that have emerged with the economic rebound and forced prices to increase, Fed Governor Michelle Bowman said today.
Indicators of economic activity have strengthened recently as a result of progress on vaccinations but the COVID-19 pandemic still weighs on the economy, the Federal Open Market Committee said today.
Real gross domestic product growth is projected to be substantial this year and the unemployment rate is expected to decline markedly, according to members of the Federal Open Market Committee.
The Federal Reserve will continue to keep its target range for the federal funds rate at zero to 0.25% as the COVID-19 pandemic continues, causing “tremendous human and economic hardship across the United States and around the world,” the Federal Open Market Committee said today.
The path of the U.S. economy will continue to depend on the course of the coronavirus and progress in vaccination, according to members of the Federal Open Market Committee.