The Federal Reserve said Wednesday in a report that the economic outlook has become “more pessimistic” in the United States due to growing concerns over weak demand, citing rising inflation and rising interest rates.
The latest reports from the US Federal Reserve on economic conditions are the result of its sharp rise in interest rates to curb inflation and in one moment in which is trying to avoid a recession in the largest economy in the world.
The report said that economic activity has faltered in many regions of the United States with “slowdown or weak demand” due to high interest rates, inflation and supply disruptions.
The Fed has raised interest rates five times questyear for a total of three percentage points, stating they are in further increases arrive.
The report, which interviews companies and other actors, says “recession fears” have also spread in many regions.
Families face life difficulties due to rising costs exacerbated by supply chain crises, sudden closures in China and the rise in energy prices with the start of the Russian war against Ukraine.
Consumer prices remain high, fueling expectations of another rate hike at the Federal Reserve meeting next month.
For its part, the International Monetary Fund said this month that major economies, including the United States, will continue to falter, predicting that quest’latest records a growth of 1.6% quest’year.
Although price growth remains high, Wednesday’s Fed report said it noted “some relief” with lower costs for freight, fuel and shipping.
The report added: “Looking ahead, expectations are for moderate price increases in general”.
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