The US economy is likely to continue to grow at a rate above the long-term trend for the next 18 months due to strong consumption, Fed member James Bullard said today, downplaying concerns that rising bank interest rates could lead to.
In particular, according to Reuters, Mr. Boulard said that growth in the range of 2.5% to 3% is “rapid compared to the long-term rate of the country”, which is estimated at just under 2%.
“We are there … The US labor market is extremely strong … Household consumption is expected to continue this year,” he added.
“People” want to leave the pandemic behind and have a lot of spending-related plans, “Boulard told an energy investor conference.
It is noted that as it became known today, the retail sales in the USA increased in April at a faster pace than expected, while at the same time their level was revised upwards in March, in a sign that the consumers in the USA were not affected by higher inflation. of the last 40 years.
Commenting on the policy of the federal bank, J. Boulard said raising its interest rates by half a percentage point in subsequent sessions remained “a good plan” to reduce inflation.
He added that the Fed hopes that this can be achieved with “the slightest possible upheaval”.