Following a meeting at the Federal Reserve on the topic of monetary policy making, it was announced that the Fed believes the United States economy is rebounding faster than they initially expected it would. This is excellent news and demonstrates the resiliency of the American people.
In the meeting itself, the Federal Open Market Committee voted to allow the interest rate to remain at a range of 0 to 2.5% in the hopes that it will help to boost the amount of jobs being added to the market. The result of this policy is a predicted drop in the unemployment rate. Presently it is at record breaking highs, however, given the current policies in place, it is expected that the rate will drop to just 4% by 2023. The unemployment rate preceding the pandemic was just 3.2%. Thus, this is promising news.
However, while this news is good, it also comes with a caveat. The expected recovery is contingent on the development of a vaccine. As such, in the interim it is imperative that Americans abide by CDC recommendations.
According to Jerome Powell, chairman at the Fed, “all of us have a role to play in our nation’s response to the pandemic. Following the advice of public health professionals, to keep appropriate social distances and to wear masks in public, will help to get the economy back to full strength.”
It is important to note that Powell believes our economy can still function until the vaccine is developed as long as people abide by CDC recommendations. He said in a statement “people are still at risk of catching it, but we’re still able to resume economic activities.”
Still, however, it is crucial to understand that the recent upturn in the economy is not being equally enjoyed by Americans. Women and Hispanic people are particularly hit hard by the virus: “the economic downturn has not fallen equally on all Americans and that burden has fallen harder on lower wage workers and those in the service sector.”
Powell also remarked that he believes the governments Pandemic Unemployment Assistance played a crucial role in revitalizing the economy. He maintains that without the assistance, the US economy would have taken a much for significant nosedive.
Therefore, while there is currently no vaccine, there still remains hope. Through the integrity and hard work of Americans, paired with government competence and guidance, the United States is expected to make a full recovery in the coming years.