The Fed notes that the growth of the US economy is ‘little or modest’

The US Federal Reserve confirmed this Wednesday that economic growth in recent months in the country has been “little or modest,” while still Almost two months to go GDP growth in the second quarter. The Federal Reserve noted in its “Beige Book,” published on Wednesday, that the twelve counties into which the institution is divided in the United States have experienced growth since the end of April, but this was “little or modest” In most cases.

This Federal Reserve report has been compiled from conversations and anecdotal data collected by central bank employees on the ground, and is not intended to Both the correctness of the official figure for GDPBut it is working to create a picture of the course of the American economy. This report also indicates that the industrial sector continues to grow strongly, but it is retail consumption and real estate that have begun to weaken due to higher prices and higher interest rates. in Eight of the Fed’s regional districtsThe outlook for the future of economic agents in these areas (businessmen, economists, etc.) is worse now than it was at the end of April.

The US government confirmed last week that the economy declined during The first three months of the year, which fell 0.4%. compared to the previous quarter. On an annual basis, the decline was 1.5%, a tenth higher than initially calculated, according to the Bureau of Economic Analysis (BEA). Among the factors that contributed significantly to this decline were lower investment in inventories and lower exports.

See also  The data behind the phenomenon of Argentine immigration to the United States

All this is a reflection of the ongoing problems in global supply chains and Changes caused by the Russian invasion Ukraine, positions are not expected to improve in the coming weeks. For its part, the Fed is fighting high inflation (8.3% in April) by raising interest rates, which is expected to have a dampening effect on consumption.

Aileen Morales

"Beer nerd. Food fanatic. Alcohol scholar. Tv practitioner. Writer. Troublemaker. Falls down a lot."

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top