He said Federal Reserve In a report on Wednesday, the outlook for the US economy turned “more pessimistic” amid growing concerns about weak demand, citing rising inflation and rising interest rates.
The Federal Reserve’s latest report on the outlook for the US economy, on the economic condition, comes after the sharp rise in interest rates with the aim of containing inflation, and at a time when it is trying to avoid a recession in the largest economy in the world.
The report said that economic activity faltered in many regions of the United States with “slowing or weak demand,” due to high interest rates, inflation and supply disruptions.
The Fed has raised interest rates five times this year for a total of three percentage points, saying more hikes are on the way.
The report, which interviews companies and other actors, says “recession fears” have also spread to many regions.
Families face living difficulties due to rising costs exacerbated by supply chain crises, sudden closures in China and rising 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, expecting the latter to record 1.6% growth this 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.”
