The New York Federal Reserve Bank President John Williams said Thursday says a combination of strong fiscal support and continued vaccine distributions could help lift the US economy as it recovers from the coronavirus pandemic and lead to the strongest growth in decades,
"With strong federal fiscal support and continued progress on vaccination, GDP growth this year could be the strongest we’ve seen in decades,"
Still, the economy remains under threat from the pandemic, and new strains of the virus could slow the recovery or lead to more infections, Williams said, echoing remarks made by other Fed officials on Thursday.
Williams said the Fed will "remain committed to using our full range of tools to help assure that the recovery will be as robust as possible."
Williams says he is more optimistic about the medium-term outlook for the economy.
Williams says he expects underlying inflationary pressures to remain subdued for some time.
Williams says Fed remains committed to using full range of tools to assure that the recovery will be as robust as possible.
Williams says the emergence of new strains of the virus could slow the path to a post-covid world.
NY Fed's Williams says GDP growth this year could be the strongest in decades with strong fiscal support and continued progress on vaccination.
Williams says further closing the unemployment gap between black and white workers will be an important part of a full recovery.
On Thursday, the bond market was rattled in a catastrophic 7-year auction and there were question marks raised over the US stock market valuations and confidence in the US economy in general.
Inflation worries among investors has seen the benchmark 10-year Treasury yields Uhit a one-year high of 1.53%.
This has been prompting investors to lock in profits on some high-flying growth stocks due to concerns over heightened valuations.
However, Williams says he is more optimistic about the medium-term outlook for the economy, in an effort to give investors some peace of mind.
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