Reported 4 months ago
The Federal Reserve survey showed that U.S. economic activity expanded from April to mid-May, but firms expressed growing pessimism about the future due to weakening consumer demand and modest inflation. The survey indicated that the jobs market is cooling down towards more normalized levels, with the central bank monitoring economic trends to determine when to adjust interest rates currently held between 5.25% to 5.50%. Despite ongoing economic expansion, firms are concerned about rising uncertainty and downside risks, with consumers pushing back against price increases while inflation remains slightly above the Fed's 2% target rate. Labor availability improved across many districts, with wage growth mostly moderate, indicating a tightening labor market despite fewer job gains in April and a decrease in annual wage increases.
Source: YAHOO