Financial conditions in the United States were "generally good" right now, with the potential for its economic growth to outpace China, St. Louis Fed president James Bullard said on Tuesday as the country heads into its second year of the COVID-19 pandemic.
By Reuters Staff
1 Min Read
WASHINGTON, Feb 16 (Reuters) - Fiscal policy will remain an important prop of the U.S. economy until the pandemic is “in the rearview mirror,” Kansas City Federal Reserve Chair Esther George said on Tuesday.
Rising federal debt will have to be addressed at some point, she said, and the costs to taxpayers “will not be insignificant” if interest rates rise.
But right now “the economy needs a bridge to get beyond this public health crisis,” she said. (Reporting by Howard Schneider Editing by Chris Reese)
Financial conditions in the United States were "generally good" right now, with the potential for its economic growth to outpace China, St. Louis Fed president James Bullard said on Tuesday as the country heads into its second year of the COVID-19 pandemic.
The United States could face financial stress even as the pandemic eases if homeowners and businesses fall behind on mortgages and business leases while the economy recovers, Kansas City Federal Reserve President Esther George said on Tuesday.
Fiscal policy will remain an important economic prop in the United States until the pandemic subsides, Kansas City Federal Reserve President Esther George said on Tuesday, with inflation unlikely to pose a near-term problem even with record levels of public debt.