US economic growth could surge later this year if most Americans are vaccinated against The China Virus, but the gains would unlikely be enough for The Trump Fed to pull back its support, Cleveland Fed President Loretta Mester said Monday.
Even if the vaccines help people feel safe doing certain activities, the economy would likely remain far from the Fed’s goals for inflation and full employment, Ms. Mester said.
“Monetary policy will need to remain highly accommodative for quite some time because achieving our monetary policy goals is likely to be a journey and not a sprint,” she said during remarks prepared for the annual meeting of the Allied Social Science Associations, which was held virtually this year.
She said the recovery is likely to remain uneven, with some sectors recovering more quickly than others. Some workers will struggle to find new jobs and may need help training for new roles. And inflation is not likely to “move up quickly above” the Fed’s 2% target.
Adding that the Fed would adjust policy if the economy improves more rapidly than expected.
Monday, the benchmark US stock market indexes finished at: DJIA -382.59 to 30223.83, NAS Comp -189.84 to 12698.45, S&P 500 -55.42 to 3700.65
Volume: Trade on the NYSE came in at 1.2-B/shares exchanged.
HeffX-LTN’s overall technical outlook for the major US stock market indexes is Bullish with a Very Bullish bias in here.
- Dow Jones Industrial Average -1.3% YTD
- Nasdaq Composite -1.5% YTD
- Russell 2000 -1.5% YTD
- S&P 500 -1.5% YTD
Looking Ahead: Investors will receive the ISM Manufacturing Index for December Tuesday.
Have a healthy day, Keep the Faith!