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The US economy, which is recovering from the COVID-19 coronavirus pandemic, is at a tipping point and may soon begin to grow much faster. This was stated in an interview with CBS by the head of the Federal Reserve System (Fed) Jerome Powell, which serves as the central bank of the United States.
According to the Fed's forecasts, as specified by Powell, strong growth of the US economy is expected in the second half of this year. "I would say that the growth we expect in the second half of this year will be very confident," he said.
According to him, the Fed and experts in the private sector predict growth of around 6% or 7% this year, which will be the highest level in 30 years. "The unemployment rate is also projected to fall significantly–from the current 6% to perhaps 4-5%," Powell concluded.
On the one hand, there are problems with vaccination in Europe, on the other hand, vaccination is accelerating in other parts of the world, in particular in the United States, where macroeconomic data is improving, there is high consumer demand and a favorable corporate investment background, which supports the market.
Economists are once again revising their US growth forecasts upward in light of a new round of budget spending, an increase in the vaccination pace and easing restrictions on business, all of which together are further favoring economic activity.
Expectations for gross domestic product growth in the second quarter were revised up by more than a percentage point to 8.1% in annualized terms, according to a new monthly survey of economists conducted by Bloomberg.
Forecasts for consumer spending are raised for each quarter of the year, reflecting an inflow of pent-up demand that could provide the country with the strongest economic growth since 1984.
The unemployment rate, which is currently at 6%, is also expected to fall to below 5% in the last quarter of the year, according to the median forecast of 71 economists who took part in the survey on April 1-8.
The Fed's Beige Book will show whether businesses remain optimistic about vaccination and recovery prospects, and the heads of the Federal Reserve banks will provide a series of comments on the economy and monetary policy. Investors will also be able to assess the sustainability of the US economic recovery thanks to data on manufacturing activity and consumer sentiment. In addition, the latest figures on inflation in the United States will be published.
On Wednesday, the Reserve Bank of New Zealand will publish interest rate data, and on Thursday, the unemployment data in Australia will be released. Increased dynamics in AUD and NZD.