Fed's Barkin: US economy may be on the brink of full recovery
|“With the most recent $1.9 trillion stimulus bill, economy 'has come most of the way back,” Richmond Federal Reserve (Fed) President Thomas Barkin said while speaking from remarks prepared for a conference in Asia.
Additional comments
“Focus now should be on groups of workers facing longer-term displacement, such as parents forced to leave the labor market.”
“US may be 'on the brink of complete recovery.”
“Policy after the pandemic should let markets work, and not hinder the creation of new businesses to protect existing ones.”
“For Fed, it is a straightforward time to put our foot on the gas.”
“Expect very robust recovery in the US in the next two quarters.”
“Business contacts says demand over last two weeks has been "very robust" as stimulus dollars get spent.”
“If the Fed is clear, consistent and credible, inflation expectations will anchor at 2% target.”
Earlier on, in a Bloomberg interview, Barkin said that the longer-term borrowing costs rising because of increased economic optimism.
Market reaction
Amid broad risk-aversion, the haven demand for the US dollar is on the rise at the expense of the riskier assets. Fears of overheating, covid vaccine jitters and the Fed allowing a capital break to expire for the big banks have hit the risk sentiment.
The US dollar index rises 0.18% on the day to trade at 92.07, as of writing.
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