Yellen Says Full Employment in 2022
The $1.9 trillion Covid-19 relief package passed by the Senate should allow the U.S. economy to return to full employment in 2022, Treasury Secretary Janet Yellen said Monday. (Wall Street Journal)
- Yellen said in an interview on MSNBC, “We expect the resources here to really fuel a very strong economic recovery…I’m anticipating, if all goes well, that our economy will be back to full employment, where we were before the pandemic, next year.”
Yellen is not alone in her optimism. Goldman Sachs is no projecting a return to a pre-COVID unemployment rate by the end of 2021. Goldman economist Joseph Briggs said in a note, “The main reason that we expect a hiring boom this year is that reopening, fiscal stimulus, and pent-up savings should fuel very strong demand growth,” (CNBC)
In fact, economic conditions look so good that economists are projecting that the U.S. could be a biggest driver of growth in the global economy even outpacing China for the first time since 2005 (Wall Street Journal)
– JP Morgan economists expect the U.S. to surpass its precrisis trend growth rate by the middle of this year.
– Goldman economists expect the U.S. economy to grow about 7% this year, according to Goldman Sachs.
– Catherine Mann, global chief economist at Citibank, said “The U.S. is going to play the role of the global locomotive again in 2021,”