Fed's Clarida: U.S. growth could hit 7% this year

FILE PHOTO: Federal Reserve Vice Chair Richard Clarida talks on the phone during the three-day “Challenges for Monetary Policy” conference in Jackson Hole, Wyoming, U.S., August 23, 2019. REUTERS/Jonathan Crosby/File Photo

WASHINGTON (Reuters) – U.S. economic growth could hit 7% this year, Fed vice chair Richard Clarida said on Monday, as labor and other supply bottlenecks get resolved and the recovery accelerates.

“It looks like the economy if anything can pick up speed this year…We could have growth north of 6%, possibly 7%,” Clarida said in remarks to an Atlanta Federal Reserve conference. Current labor and supply bottlenecks, he said, are likely to pass, and evidence that “it may take more time to reopen a $20 trillion economy than it did to shut it down.”

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