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The Economic Outlook – Optimism Despite the Challenges Ahead

Author

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  • Eric Rosengren

Abstract

We enter 2021 with some optimism. The pandemic is likely to continue to be a problem for public health and the economy until widespread vaccinations take hold. Nonetheless, with substantial fiscal and monetary support, I expect a robust recovery starting in the second half of this year. I also expect that short-term interest rates near zero will be appropriate throughout this year, and that the Federal Reserve will continue to purchase long-term assets until the economy is on a stronger economic footing.

Suggested Citation

  • Eric Rosengren, 2021. "The Economic Outlook – Optimism Despite the Challenges Ahead," Speech 90900, Federal Reserve Bank of Boston.
  • Handle: RePEc:fip:fedbsp:90900
    Note: Virtual speech
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