He said Federal Reserve In a report on Wednesday, the outlook for the US economy has become “more pessimistic” amid growing concerns over weak demand, citing rising inflation and rising interest rates.
The Federal Reserve’s latest report on the prospects for the US economy, on economic conditions, comes after its sharp increase in interest rates with the aim of curbing inflation, and at a time when it is trying to avoid a recession in the world’s largest economy.
The report stated that economic activity faltered in many regions in 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 by a total of three percentage points, saying more increases are on the way.
The report, which polls companies and other players, said “recession fears” also spread to many regions.
Families face living difficulties with rising costs exacerbated by supply chain crises, sudden shutdowns in China, and rising energy prices with the start of the Russian war on Ukraine.
Consumer prices remain high, fueling expectations for another rate hike at next month’s Federal Reserve meeting.
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 percent growth this year.
Although price growth remains high, the Fed’s report on Wednesday said it had noticed “some relief” with lower costs for goods, fuel and shipping.
The report added: “Looking forward, expectations are for moderate price increases in general.”