Washington – The US economy, backed by signs of accelerated vaccination and rapid employment, is heading for a strong recovery, Federal Reserve Board Chair Jerome Powell said Thursday.
But he warned that not everything would benefit immediately.
“There are many factors gathered to support the bright outlook for the US economy,” Powell said at a virtual spring meeting between the International Monetary Fund and the World Bank. The economy will fully resume fairly quickly. “
Still, Powell said many Americans who are absent from work have a hard time finding new jobs because some industries are likely to be smaller than they were before the pandemic. In other cases, he said employers are trying to use technology on behalf of workers wherever possible.
“It’s important to remember that we won’t return to the same economy,” Powell said. “This will be another economy.”
Powell spoke with other global economic leaders during a meeting of two global lenders. The roundtable also addressed the new trend of rich countries recovering from a pandemic much faster than poor countries, partly because vaccination is much faster.
Ngozi Okonjo Iwara, Executive Director of the World Trade Organization, said unequal distribution of vaccines could threaten the recovery of the global economy. Only 0.1% of the vaccine went to low-income countries, she said.
“If poor countries do not do anything to change the pace of vaccine acquisition, it will take a long time to reach the world’s herd immunity,” said Oknojoywarera. It could, in turn, threaten already vaccinated countries by boosting the number of cases and spreading new variants that could reverse the economic development of wealthy countries.
On Tuesday, the IMF raised its economic forecast for global economic growth this year from 5.5% in January to 6%. The increase in growth is believed to be primarily due to the accelerated deployment of vaccines and the $ 1.9 trillion bailout package that the Biden administration pushed to Congress last month.
IMF Managing Director Cristalina Georgieva told reporters Wednesday that the recession last year, the worst since World War II, would have been three times more serious without significant government support.
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The United States is approaching a full resumption of a “different economy”
Source link The United States is approaching a full resumption of a “different economy”