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US to grow 7pct this year, fastest since 1980s: Fed's Williams

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Heather Scott, Agence France-Presse

<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img src="https://sa.kapamilya.com/absnews/abscbnnews/media/2021/reuters/05/04/20210503-usa-property-manhattan.jpg"/><figcaption>A woman passes by an empty retail space in the Greenwich Village area of Manhattan in New York City, US, May 3, 2021. <em>Brendan McDermid, Reuters</em></figcaption></figure></div><p>NEW YORK - The US economy is likely to expand by seven percent this year as it bounces back from the COVID-19 pandemic, its fastest rate since the early 1980s, a top Federal Reserve official said on Monday.</p><p>However, the world&#x27;s largest economy still &quot;has a long way to go&quot; and needs to see several months of strong employment growth to achieve a full recovery, said John Williams, president of the Fed&#x27;s New York branch.</p><p>Williams also joined Fed Chair Jerome Powell&#x27;s efforts to fend off concerns about rising prices leading to an inflationary spiral, and cautioned against reading too much into short-term data.</p><p>He said he expects to see &quot;real GDP increasing around seven percent this year,&quot; calling it &quot;welcome progress after the toughest period for the economy in living memory.&quot;</p><p>&quot;While I am optimistic that the economy is now headed in the right direction, we still have a long way to go to achieve a robust and full economic recovery,&quot; Williams said in a speech to be delivered to the Women in Housing and Finance annual conference, noting stronger employment growth would be needed to make the bounceback complete.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/04/29/21/us-economy-accelerates-in-first-quarter-jobless-claims-edge-lower">US economy accelerates in first quarter, jobless claims edge lower</a></li>	<li><a href="https://news.abs-cbn.com/business/02/28/21/what-will-us-economic-recovery-look-like">What will US economic recovery look like?</a></li></ul><p>He credited the Fed&#x27;s stimulative policies, including interest rates near zero, with having &quot;positive effects&quot; on the economy, enabling Americans to purchase homes and big-ticket goods.</p><p>&quot;In fact, with accommodative financial conditions, strong fiscal support and widespread vaccinations, I expect that the rate of economic growth this year will be the fastest that we&#x27;ve experienced since the early 1980s,&quot; he said.</p><p>Rising energy prices and the rebound from the pandemic downturn are pushing prices higher, but &quot;it&#x27;s important not to overreact to this volatility in prices resulting from the unique circumstances of the pandemic,&quot; Williams said.</p><p>He projected inflation will fall back to the central bank&#x27;s two percent target in 2022 &quot;once the price reversals and short-run imbalances from the economy reopening have played out.&quot;</p><p>Powell last week made the same point as he tried again to quell rising concern among investors and some economists, saying there is a difference between &quot;one-time price increases&quot; and a persistent rise in inflation.</p><figure class="op-interactive"><iframe allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=1677235" width="100%"></iframe></figure><div class="iwantbar">Watch more in <a href="//www.iwantv.com.ph/">iWantv</a> or <a href="//tfc.tv/">TFC.tv</a></div><div><strong>&#x27;CLEALRY BRIGHTENED&#x27;</strong></div><p>In a speech Monday, Powell also noted that the US economic outlook had &quot;clearly brightened&quot; but cautioned that &quot;we&#x27;re not out of the woods yet.&quot;</p><p>He stressed that the pain of the economic crisis has hurt lower income workers most, and Black and Hispanic workers suffered larger job losses.</p><p>&quot;The Fed is focused on these long-standing disparities because they weigh on the productive capacity of our economy,&quot; Powell said in a speech to a community development group.</p><p>&quot;We will only reach our full potential when everyone can contribute to, and share in, the benefits of prosperity.&quot;</p><p>Williams noted that the economy added 900,000 jobs in March, and said, &quot;I am hopeful that we will see very strong job gains over coming months as the economy continues to reopen.&quot;</p><p>The Labor Department is due to release the jobs report for April on Friday, and the median forecast is for the United States to add one million jobs.</p><p>&quot;But, even with the gains that have occurred, let&#x27;s not forget that there are about eight and a half million fewer jobs today than before the pandemic,&quot; Williams said.</p><p>Meanwhile, conditions so far are not enough for the Fed to alter policy, he said, echoing the decision of the central bank&#x27;s policy-setting Federal Open Markets Committee last week.</p><div><strong>© Agence France-Presse</strong></div>

<p>The US economy is likely to expand by seven percent this year as it bounces back from the Covid-19 pandemic, its fastest rate since the early 1980s, a top Federal Reserve official said on Monday.<br /> </p>

The US economy is likely to expand by seven percent this year as it bounces back from the Covid-19 pandemic, its fastest rate since the early 1980s, a top Federal Reserve official said on Monday.

US to grow 7pct this year, fastest since 1980s: Fed's Williams

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US to grow 7pct this year, fastest since 1980s: Fed's Williams

Heather Scott,

Agence France-Presse

Published May 04, 2021 07:18 AM PHT

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