According to Thomas Barkin, this year, the economy is waiting for three stages.
Federal Reserve Bank of Richmond President Thomas Barkin on Wednesday highlighted three phases of the US economy this year. It was “very optimistic” about its prospects thanks to the success in the fight against the COVID-19 pandemic.
As Barkin said at a virtual event hosted by the Maryland Chamber of Commerce, the first third of the year will be the most challenging. It will require further measures to support the unemployed and small businesses while vaccination efforts gain momentum.
In the second phase, around the middle of the year, the vaccinated populations will return to the activities they had to give up for most of the past year. Barkin said he sees significant “pent-up demand” for activities such as travel and entertainment.
Finally, Barkin said, a more normal business environment should be restored in the last third of the year. However, the most important condition for reaching this stage is successful in fighting against the pandemic, he stressed.