Fed Reserve Bank CEO says economic recovery underway

KANSAS CITY, Mo. — National economic recovery is underway, according to Esther George, president and CEO of Kansas City Federal Reserve Bank.

George was a speaker at the Ag Outlook Forum hosted by Agricultural Business Council of Kansas City.

“Frankly, it has been more rapid than I think many people, myself included, expected,” she said of the recovery. “We have seen things like retail sales, for example, back to pre-pandemic levels. Our labor market has been making a comeback.”

George attributed the recovery to two factors, in addition to the general resiliency of the U.S. economy.

The first is that people are learning more about the COVID-19 virus and businesses have been able to open.

Second, fiscal stimulus dollars and federal monetary policy have helped boost the economy.

“All in all, the outlook is positive,” George said. “But that, of course, depends on how the path of the virus goes. In our region we will continue to keep a close eye on how businesses, how households and how important sectors like the ag sector, are experiencing this recovery.

“That will inform how we think about the stance of interest rates and the Fed’s balance sheet in the months ahead.”