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.
Eighty-eight percent of midsize business leaders are optimistic about their company’s performance in next six months, up significantly from 56% one year ago and the highest percentage recorded in 11 years of JPMorgan Chase’s Business Leaders Outlook Pulse survey, the bank said yesterday.
The global financial system has weathered the pandemic due to greater resilience, supported by the G20 reforms, and a “swift, determined and bold international policy response,” according to a new interim report from the Financial Stability Board.
Testifying before a House hearing today, Federal Reserve Chairman Jerome Powell said that a recent rise in inflation is transitory and that a “perfect storm” of strong demand and weak supply due to the reopening of the economy is a substantial cause.
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.
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.
The pandemic encouraged more people to consider opening a bank account online, according to a new FICO survey released today.
The U.S. Treasury today announced the creation of the Office of Recovery Programs to administer economic relief and recovery programs.