Fed Vice Chair Richard Clarida said in a speech that the recovery since spring has been “robust”. But, “let us not forget that full economic recovery from the COVID-19 recession has a long way to go”. Unemployment rate remains “elevated” at7.9%. It would be 3% haigher if labor force participation remained at February’s level. Also, inflation is still running below Fed’s 2% longer-run objective.
“It will take some time to return to the levels of economic activity and employment that prevailed at the business cycle peak in February, and additional support from monetary—and likely fiscal—policy will be needed.”
As for Fed, Clarida reiterated, ” we are committed to using our full range of tools to support the economy and to help ensure that the recovery from this difficult period will be as robust and rapid as possible.”
