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5/11, 8:24 PM (Source: TeleTrader)
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Fed's Harker: US GDP may grow by 7% in 2021

Federal Reserve Bank of Philadelphia President Patrick Harker estimated on Tuesday the United States' gross domestic product (GDP) could expand by 7% in 2021 before moderating to a growth of 3% in 2022.

Harker also predicted headline inflation this year would stand at 2.3%, with core inflation at 2%. He noted some "upside risks to increased inflation" and that the Fed will monitor those changes "closely." He also advised against withdrawing the institution's incumbent measures of support to the economy, heavily influenced by the COVID-19 pandemic, despite the country's ongoing success in mass vaccination against the disease.

Harker thus reaffirmed his New York counterpart John Williams's projection the US's GDP will grow by 7% this year, which would be its "fastest" rise "in decades."

Breaking the News / JR