⁍ The pandemic threw the U.S. economy into a ‘very deep hole,’ Clarida said.
⁍ The U.S. unemployment rate has dropped significantly to 7.9% from a high of 14.7% seen earlier this spring.
– The US economy is doing better than expected in the third quarter, but the full recovery from the Great Recession “has a long way to go,” a Federal Reserve official said today. “While recovery since the spring collapse in economic activity has been robust, let us not forget that the full economic recovery from the COVID-19 recession has a long way to go,” said Richard Clarida, the Fed’s vice chair, according to Reuters. The unemployment rate has dropped to 7.9% from a high of 14.7% seen earlier this spring, but it may not drop below 4% again until the end of 2023, according to Fed projections. Clarida said more monetary and fiscal policy are needed to support the economy throughout the recovery. “Speaking for the Fed, I can assure you that 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,” he said.
Source: https://www.reuters.com/article/us-usa-fed-clarida/feds-clarida-says-us-economic-recovery-has-a-long-way-to-go-idUSKBN274260