Fed's Bullard: Still expecting 7% full-year growth in 2021

Eren Sengezer FXStreet

St. Louis Fed President James Bullard said on Friday that the second-quarter GDP was a bit lower than expected six or eight weeks ago but noted that he still sees a strong growth toward the end of the year, as reported by Reuters.

Additional takeaways

"Still expecting 7% full-year growth for US in 2021."

"Seeing above-trend growth for quite some time in US."

"Productivity seems much higher, on the cusp of that continuing as technology spreads."

"Overwhelming anecdotal evidence of tight labor markets in US, seen in offers of hiring bonuses and other benefits."

"Non-farm payrolls remain below pre-pandemic levels due to supply constraints, expect strong job growth going forward."

"Jobs could be fully recovered by next summer, which would meet the Fed condition for raising rates."

Market reaction

The US Dollar Index edged slightly higher following these comments and was last seen rising 0.1% on the day at 91.97.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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