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US Federal Reserve may re-heat the economy for post Covid recovery

27 Apr 2021 (Last Updated April 27th, 2021 15:41)

27 April

David Beckworth, senior research fellow at the Mercatus Centre at George Mason University and a former international economist at the US Department of the Treasury, retweeted an article on the Federal Reserve meeting this week to restate its commitment to keeping ultra-low interest rates, even as the economy heats up in the midst of the coronavirus pandemic.

Hiring has picked pace in the US, as Americans step out to shop, travel, and eat at restaurants, while inflationary pressures increase after lying dormant for years, the article noted.

Chair Jerome Powell is most likely to highlight that the economy is far from having fully recovered and will need continued assistance from the central bank.

According to official data, the country is still short of eight million jobs pre-Covid-19 outbreak.

In addition, the 6% unemployment rate is below pre-Covid but still remains elevated.

Powell has emphasised that the job market needs to recover further in order to help the low-income workers and people of colour who have been disproportionately impacted by the pandemic and have lost their jobs and incomes.

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