The Federal Reserve acknowledges that fluctuations in net exports have impacted the data, revealing a 0.3% contraction in the economy during the first quarter. However, it indicates that “recent indicators suggest that economic activity has continued to expand at a solid pace.”
“The unemployment rate has stabilized at a low level in recent months, and labor market conditions remain strong,” notes the Federal Open Market Committee (FOMC) in a statement released today, adding that inflation “remains relatively high.”
Despite this, the Fed admits that “uncertainty about the economic outlook has increased further” and assures that it is attentive to the risks, noting that “risks of higher unemployment and higher inflation have risen.”
In this context, the benchmark interest rates of the U.S. central bank remain in the range of 4.25%-4.5%, as anticipated by markets and analysts.
Regarding the future, the FOMC indicates that it will continue to monitor “the implications of the incoming information for the economic outlook,” stating it is “prepared to adjust the stance of monetary policy as appropriate.”
This marks the third meeting of the Fed since Donald Trump’s return to the White House, in an economic landscape more unfavorable than expected and under attacks from the Head of State. It is also the third consecutive time the Fed has maintained the key rates.
