March 23, 2021 | 09:00
Treasury Secretary Janet Yellen and Federal Reserve Chairman Jerome Powell are optimistic about the direction of the US economy, given the vaccination rate and the recently approved $ 1.9 trillion aid package.
Based on prepared comments, Yellen will reveal to lawmakers that he likely is Full employment In 2022.
I am sure that people will reach the other side of this epidemic with the foundations of their lives intact. And I think they will find there a growing economy. In fact, I think we can see a return to full employment next year.
Yellen will say, based on comments made before the House Financial Services Committee
Yellen will say the Treasury – tasked with implementing much of the stimulus and distributing funds – has been working to expedite relief to areas most in need, including small businesses.
The Treasury Department is also seeking to reduce some documentation requirements for Americans struggling to obtain funds to help pay for their home rent and mortgage. This part of the house is contemplating $ 30,000 million.
“We are working to reduce red tape for them, while continuing to take reasonable steps to prevent fraud and abuse,” Yellen’s letter said.
The Treasury Department is working closely with state, local, tribal, and regional governments to implement $ 350 billion in aid for them.
Treasury officials said last week that the state and local government aid program, which is still laying out rules for the use of the funds, will start disbursing the funds in about 60 days.
Optimism comes not only from the government, but also from the Federal Reserve (Fed) and its Chairman, Jerome Powell, who considers that the economy has “improved a lot” but is still far from a full recovery.
Recovery has progressed faster than expected overall and appears to be consolidating,
Based on statements by Powell prepared
Household spending has risen and the housing sector is recovering, says the Fed chairman.
“Nevertheless, the sectors of the economy most affected by the resurgence of the virus and greater social distancing remain weak, and the unemployment rate remains high at 6.2%,” the letter said.
“The recovery is far from complete, so at the Federal Reserve, we will continue to provide the economy with the support it needs as long as it is needed,” he adds.
Fed officials and private analysts expect increased spending and economic growth in the coming months as more Americans get vaccinated and risk exiting.
For this year, The central bank estimates an economic expansion of 6.5%. The unemployment rate is 4.5%.
With information from Reuters