In the view of the analysts at Morgan Stanley, the US economic growth is likely to return to the pre-coronavirus pandemic level by the end of this month.
Citing “encouraging developments on reopening the economy, a faster pace of vaccinations, stronger job growth, fresh stimulus.”
“See the US unemployment rate falling to 4.9% this year.”
“The ‘cost’ is rising inflation, forecast 2.6% in April and May and then easing back top 2.3% at the end of this year.”
“Will stay at a similar level into 2022, above the Fed target of 2%).”
“Do not expect significant tightening by the Fed until 2023.”
“Asset purchases will be scaled back from January 2022.”