Federal Reserve Bank of Richmond President Thomas Barkin said in an interview he remains optimistic the U.S. economy will continue recovering from the coronavirus pandemic this year and that rising government bond yields don’t worry him much.
Coronavirus vaccinations, pent-up consumer demand, strong levels of savings and the prospect of more government stimulus suggest the economy is poised for a very healthy spring and summer, Mr. Barkin told The Wall Street Journal in the Wednesday interview.
“I do think we’re at the point where there’s daylight on the horizon,” said Mr. Barkin, a voting member of the rate-setting Federal Open Market Committee.
Most other Federal Reserve officials agree the rollout of vaccines should help the economy return to normal and achieve strong growth this year, followed by slower growth in 2022.
Fed officials also expect lower unemployment as the economy recovers. While the jobless rate fell to 6.3% in January from 6.7% in December, Federal Reserve Chairman Jerome Powell has said the rate may in reality be closer to 10%.
