Following a dramatic hike in interest rates with the goal of containing inflation and at a time when the world is striving to avoid stagnation, the Federal Reserve released its most recent report on economic conditions.
According to the report, supply disruptions, rising prices, and high interest rates have caused economic activity to “halt or slow down” in many American regions.
This year, the reserve increased the interest rate five times for a total of three percentage points, indicating that additional rises are imminent.
According to the survey, which looks at the perspectives of businesses and other actors, “fears of recession” have expanded to many other areas.
Families face living difficulties with the high costs of supply chain crises, sudden closure decisions in China, and high energy prices with the start of the Ukraine crisis.
Consumption prices are still high, which fuels predictions that the Federal Reserve will increase interest rates once more at its meeting next month.
The International Monetary Fund, on the other hand, predicted this month that major economies, including the United States, would continue to sputter and that it would grow by just 1.6% this year.
The Federal Reserve Report stated on Wednesday that it had observed “some breakthrough” with the low costs of commodities, fuel, and shipping despite the fact that price rise is still significant.
The research said that forecasts “suggest the slowing of price increases in general.”
Federal: Economic forecasts for the United States are “more bleak”
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