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MNI BRIEF: Mester Warns Recovery Slow Even After Vaccination

Federal Reserve Bank of Cleveland Loretta Mester on Monday warned that the U.S. economic recovery will take time even after the population is vaccinated and monetary policy will support the recovery throughout.

Other FOMC members have been more optimistic about the speed of the recovery. Dallas Fed President Robert Kaplan told MNI last month that consumer mobility and engagement could come in the second half of the year and much earlier than the achievement of herd immunity.

"It's not going to be like all of a sudden, everyone's vaccinated, the world goes back to what it was before. It's just going to take some time," Mester said at a virtual event in Ohio. "Ittakestimeforpeopletoskillupagainandtheyhavetogetajobinadifferentfirmorevenadifferentindustry. Certaincompanieshavegoneoutandyouknowit'lltaketimefornewcompaniestocomeinandsetthemselvesup."

MNI Washington Bureau | +1 202-371-2121 | jean.yung@marketnews.com
MNI Washington Bureau | +1 202-371-2121 | jean.yung@marketnews.com

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