The American central bank system, the Federal Reserve (Fed), expects the economic situation in the United States to improve in the course of this year.

Despite this, the U.S. labor market is far from recovering from the downturn that caused the corona pandemic, Chairman Jerome Powell warned at a two-day hearing before Congress on the policy of the central bank umbrella.

"While we should not underestimate the current challenges, developments point to a better outlook later this year," Powell said.

"In particular, advances in vaccinations should help accelerate the return to normal."

The Federal Reserve is currently pumping $ 120 billion (almost 99 billion euros) into the US economy through buy-back programs every month to keep the recovery from the corona crisis going.

Powell reiterated that this stimulus program will remain on its current scale until substantial steps are taken towards optimal employment and the 2 percent inflation target.

Powell was critical of the way the recovery started in American society.

"The high rate of unemployment is especially severe among the low-income earners and for African Americans, Hispanics and other minorities," he said.

"The economic disruption has turned many lives upside down and created great uncertainty about the future."