WASHINGTON (Reuters) – The U.S. economic recovery continued at a modest pace over the first weeks of this year, with businesses optimistic about the months to come and demand for housing “robust,” but only slow improvement in the job market, the Federal Reserve reported on Wednesday.
The U.S. central bank holds its next policy meeting in two weeks, at a time of increased optimism the coming year will see risks from the coronavirus pandemic subside, and the economy register strong growth.
The boost in the economic outlook, driven by the country’s expanding COVID-19 vaccination program and the potential for a $1.9 trillion federal spending package, has prompted market speculation the Fed may be forced to scale back its support for the economy sooner than expected.
Federal officials in recent days have rebutted that idea by noting the long list of problems still facing the economy, from high joblessness to weak inflation, that would need to ease before it considers any change in monetary policy.
(Reporting by Howard Schneider; Editing by Paul Simao)
