On Wednesday while addressing to the congress, President Joe Biden announced that “America is rising anew” on the verge of the defeating pandemic. This proves to be true that the given growth in the economy in the first quarter of 2021 and the economic outlook. The US economy is booming faster than expected after contracting sharply in 2020.
The strong growth was partly right down to easing anxiety over the pandemic as vaccines are unrolled across the US, boosting domestic demand and allowing businesses like restaurant and bars to reopen. But it’s several years faraway from fully recovering from the pandemic recession. The GDP, the measure of goods and services made the U.S. rose 6.4% seasonally adjusted annual rate in the first quarter of 2021, according to the Department of Commerce. Additionally the unemployment rate has fallen to 6% since the fall of last year.
This puts the World’s largest economy just a little bit below pre ‐ pandemic levels. The Fed stimulus money and vaccinations have contributed to the growth in output. In the spring, most households in the U.S. have received a stimulus payment of $1,400 which they have used, in addition to the money they saved by not traveling and not eating out to buy a range oh big‐ticket goods and services.
Also, the rate of vaccinations increased with the succession of Joe Biden to the presidency, which contributes positively to the GDP. Within the same ideology, the federal reserve keeps it’s interest rate to near zero to lower borrowing costs such as interest rates on mortgage and loans. The Fed Chairman Jerome Powell said there have been clear signs of progress within the economy but that the recovery is “uneven and much from complete”. “The ongoing public health crisis continues to beset the economy, and risks to the economy outlook remain”, added the Federal Open Market Committee, which sets rates.