US economy likely to grow between 5-6% in 2021

US economy likely to grow between 5-6% in 2021

ATLANTA: The US economy could grow between 5 percent and 6 percent this year, Atlanta Fed President Raphael Bostic said on Friday. He said the economy is still under "considerable distress" and the Federal Reserve will continue to provide support until the labor market is stronger and average inflation is on track to meet the US central bank's long-term target. "We're ready and able “¦ to support the recovery as long and as strongly as necessary," Bostic said during a virtual event organized by Stanford University. The US economy could grow between 5 percent and 6 percent this year, Bostic said. But he cautioned that the labor market could face structural changes as a result of the pandemic that may require some laid-off service-sector workers to train for jobs in new industries. A decline in business travel and increased use of automation could mean that some of the jobs lost during the pandemic will not return, Bostic said. "We need to do all we can to minimize the long-term damage from the pandemic crisis and to make sure that the recovery is as broad-based and as inclusive as possible." Asked if he thought the Fed needs to take action to