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The US economy will grow by up to 6.5 percent this year

The US economy will grow by up to 6.5 percent this year. The Fed will continue to buy $ 120 billion a month in bonds.

The US economy will grow by up to 6.5 percent this year
Yazar: Tom Roberts

Yayınlanma: 18 Mart 2021 21:44

Güncellenme: 8 Kasım 2024 16:34

The US economy will grow by up to 6.5 percent this year

The US Federal Reserve (Fed) predicts that the country's economy will accelerate significantly this year. However, it plans to keep its key interest rate close to zero until the end of 2023, although financial markets fear potentially higher inflation. The Fed also said it would continue to buy $ 120 billion a month in bonds to keep long-term interest rates low. On Wednesday, the US Federal Reserve significantly improved its forecast for economic growth and inflation. It estimates that the US economy will strengthen by 6.5 percent this year. The previous projection, published by the Fed in December, expected economic growth of only 4.2 percent. Inflation in the US, according to the country's central bank, will rise to 2.4 percent by the end of this year. The Fed originally expected it to be only 1.8 percent. Unemployment in the US is also forecast by the central bank to fall faster than expected in December. From the current level of 6.2 percent, it should decrease to 4.5 percent by the end of this year and to 3.9 percent by the end of next year.
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