Challenging months ahead despite hope of economic recovery: FED

Agency: Federal Reserve officials of the United States of America said that they have expected roughly 4.2 percent economic growth next year, reports BBC.

Despite a recent surge in coronavirus cases, the prospects for the US economy have brightened since September, according to the Federal Reserve Bank.

The Federal Reserve has projected a fall in the rate of unemployment from 6.7 percent to 5 percent.  The new projection follows the distribution of vaccines against Covid-19 by the US medical authorities.

According to BBC, Federal Reserve Chair Jerome Powell warned that the coming months would be “particularly challenging” because of the surge in coronavirus cases.

However, he said he was hopeful that widespread distribution of the vaccine would enable a strong rebound in the second half of 2021.