US growth, unemployment projections raised by Fed officials

Officials at the Federal Reserve upgraded their estimates of recovery from the coronavirus on Wednesday due to the expected impact of more than $400 billion in direct stimulus payments to Americans as well as other provisions of the recently passed $1.9 trillion stimulus package.

Members of the Federal Open Market Committee (FOMC) said they thought the GDP would now grow 6.5% in 2021 rather than the 4.2% previously estimated. They also thought unemployment would reach 4.5% by December rather than 5%, as previously projected.

The officials said they did not see unemployment reaching pre-pandemic levels (3.5%) until 2023, however. Nearly 100,o00 small businesses that were temporarily closed during the pandemic have shut down permanently, Fortune reported, and those kind of losses are going to take time to replace.

The FOMC said their projections were not official from the Federal Reserve Bank, but are a guide to where officials think the economy is headed.

Economies opening as vaccinations ramp up

Besides the COVID relief bill, accelerated vaccinations of most U.S. adults is also helping the economy rebound by getting more people back in the work force as well as back to eating out and other public activities. New case numbers in the U.S. have continued to drop as more people receive vaccinations, which is encouraging some of the stricter U.S. governors to open their economies more.

The recession caused by coronavirus-related shutdowns was the sharpest decline on record in U.S. history, but the recovery is also happening faster than expected.

Even with the rapid recovery and trillions of dollars artificially thrown into the economy, however, Fed members are not expecting to raise interest rates for at least the rest of 2021, and most do not think it will be raised more than once in 2022 either.

Fed Chair Jerome Powell has been consistent in saying rates will not be raised until inflation of more than two percent is likely, something that is not expected to happen this year and possibly not the next, either.

Fed not backing off support for COVID-wracked economy

For the forseeable future, Powell also said the Fed would keep buying $120 billion a month in Treasury and mortgage bonds to help prop up the economy.

While some of the stimulus money sent to households is likely to end up in savings accounts, some will also be spent on bills and discretionary items that will contribute to the health of the overall economy.

The IRS reported that it disbursed 90 million stimulus checks this week, mostly through direct deposit. After a short delay caused by the choice of Wednesday for the date when funds would be released to banks and credit unions, the money will be hitting most accounts Wednesday.

The huge task has not helped the IRS process tax forms submitted by millions of Americans, and word went out on Wednesday that the IRS will now delay the tax filing due date until May 17 to give itself time to catch up on processing returns.

Share on facebook
Share To Facebook

Welcome to our comments section. We want to hear from you!

Any comments with profanity, advocacy of violence, harassment, personally identifiable information or other violations will be removed. If you feel your comment has been removed in error please contact us!

37 Responses

  1. Not sure why the media calls this the covid bill when the money is being used for pork barrrel spending most of it that’s the media for you propaganda

  2. You Might Like
  3. I do not even know how I ended up here, but I thought this
    post was good. I don’t know who you are but definitely you
    are going to a famous blogger if you are not already 😉 Cheers!

  4. Attractive section of content. I simply stumbled upon your site
    and in accession capital to say that I get actually enjoyed account your weblog posts.

    Any way I will be subscribing in your augment and even I success you get entry to persistently fast.

    Here is my web blog … epicwin game list

  5. What i do not understood is if truth be told how you are no longer actually much more well-appreciated than you
    may be right now. You are so intelligent. You realize thus significantly with regards to this matter, produced me for my part believe
    it from so many numerous angles. Its like women and men don’t seem to be involved unless it is
    something to do with Woman gaga! Your individual stuffs great.
    All the time maintain it up!

  6. Thanks for the good writeup. It in truth was a leisure account it.
    Look complicated to more delivered agreeable from you!
    However, how can we be in contact?

  7. Howdy! This blog post could not be written any better! Going through this article reminds me of my previous roommate!
    He continually kept talking about this. I will forward this article to
    him. Pretty sure he’ll have a very good read. Many thanks for sharing!

    My web site ok388 pc download

  8. I am extremely impressed along with your writing
    abilities and also with the structure for your
    weblog. Is this a paid topic or did you modify it
    your self? Either way keep up the excellent quality writing,
    it’s rare to see a nice weblog like this one
    these days..

    my web page; game aaa1188 download (

  9. Hello There. I discovered your weblog the usage of msn. This is an extremely neatly written article.
    I’ll make sure to bookmark it and return to read more of your helpful information. Thank you for the post.
    I’ll definitely comeback.

    Also visit my web site – download game lpe88

  10. Good day! I could have sworn I’ve been to this blog before but after looking at many of the articles I
    realized it’s new to me. Anyways, I’m certainly delighted
    I discovered it and I’ll be bookmarking it and checking back regularly!

    Feel free to visit my blog :: 918kiss plus 11

  11. It’s hard to come by educated people in this particular
    subject, however, you sound like you know what you’re talking
    about! Thanks

    Look at my web blog; i 3win8

  12. It’s hard to come by well-informed people in this particular subject,
    however, you sound like you know what you’re talking about!

  13. I must thank you for the efforts you have put in writing this site.
    I am hoping to check out the same high-grade content from you in the future as well.
    In truth, your creative writing abilities has encouraged me to get my own website now 😉

  14. It is perfect time to make some plans for the future
    and it is time to be happy. I’ve read this post and if I could I desire to
    suggest you few interesting things or advice. Perhaps
    you can write next articles referring to this article.
    I desire to read even more things about it!

  15. This is very fascinating, You’re an overly skilled blogger.
    I’ve joined your feed and stay up for looking for more of
    your excellent post. Also, I’ve shared your web site in my social networks

  16. This is really interesting, You’re a very skilled
    blogger. I’ve joined your rss feed and look forward to seeking more of your great post.
    Also, I’ve shared your site in my social networks!

  17. Hello, this weekend is nice in support of me, for the reason that
    this point in time i am reading this wonderful educational
    paragraph here at my residence.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Latest Posts