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The Fed announced that US economic growth was strong in the first half of this year and that it is still expecting a gradual increase in interest rates.
The comments of the Central Bank in a semi-annual report to Congress were optimistic. His second report to lawmakers since Jerome Powell took the federal presidency in early February. Powell must answer questions on the report to legislators on Tuesday and Wednesday. [1969002] The details in the 63-page report are in line with the current detailed expectations of the Federal Reserve at its monetary policy meetings that say that strong economic growth and low unemployment rates are likely to be high. interest, but the absence of inflationary pressures means that interest rates can remain progressive.
The US central bank said in its report: "In the first half, overall economic activity seems to have progressed rapidly." Improved sentiment of consumers and businesses, previous increases in US household wealth, strong economic growth abroad and favorable tax conditions in the country
The Fed is therefore expecting more gradual rate increases of interest to support economic growth. The Federal Reserve said the Trump tax cuts have likely helped boost consumer spending at a slow pace early in the year and will likely provide moderate support for economic growth this year.
San The report's policies reiterated that wage growth was weaker than expected, given the current unemployment rate of 4%.
The US Central Bank discussed Trump's trade protection policies, saying that uncertainty is a concern for financial markets. "A number of policymakers have expressed concern that trade disputes with key allies like China could slow down investment," Powell said, saying the imposition of high tariffs on products and services could hurt the economy.
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