(Reuters) – The $1.9 trillion fiscal relief package lawmakers are considering is appropriately large given the pandemic’s effects on the labor market and policymakers will have time to pull back support as the economy approaches full employment, Boston Federal Reserve Bank President Eric Rosengren said on Friday.
“It is a big fiscal package that is being considered right now – I think it’s appropriately big,” Rosengren said in an interview with Reuters. “I am much less concerned than some commentators about it being a problem of overheating the economy.”
Rosengren said he is hopeful the recovery will be strong enough for the labor market to return to full employment within two years, though he said the pace will depend on what happens with new variants of the virus and the distribution of vaccines.
(Reporting by Jonnelle Marte; Editing by Chizu Nomiyama)
