Fed's Bullard: Expecting strong GDP growth in 2021 with pandemic easing in H1

St. Louis Fed President James Bullard said on Wednesday that he expects to see very strong GDP growth in 2021 as the coronavirus pandemic eases over the first half of the day, as reported by Reuters.

Additional takeaways

"Exceptionally high savings and other resources available to households will fuel consumption."

"Seeing the unemployment rate as low as 4.8% in coming months versus the current 6.7%."

"Virus mutation that defeats the vaccine is a tangible risk to the positive scenario."

"Move higher in market-based inflation expectations is a welcome development for the Fed."

Market reaction

The US Dollar Index showed no immediate reaction to these remarks and was last seen posting small daily losses at 91.14.