January 25, 2021

The Fed sees "mild to moderate" economic growth in the US

The Fed sees "mild to moderate" economic growth in the US

The US Federal Reserve (Fed) He noted economic growth at a "mild to moderate" pace, although some sectors expect their development to rebound in the coming months, according to his document known as the "beige book" published on Wednesday.

All districts consulted reported "mild to moderate" growth in the last two months and some of them blamed the "unusually cold" climate in their regions.

The retail sector of several districts predicted, however, optimistic conditions for the second quarter of the year thanks to a "warmer" climate and holiday dates.

Likewise, the labor market continued to "adjust" with wage increases throughout the country, while regarding prices the document indicates that the "majority" of the districts saw increases in the costs of supplies.

Again, a large part of the districts continued to complain about the lack of "skilled" workers.

The unemployment rate in the United States remained unchanged at 3.8% in March, a month in which 196,000 new jobs were created, which recovered the good health of the labor market after the weakness registered in February .

On the other hand, inflation increased to 1.9%, around the annual target of 2% marked by the body led by Jerome Powell.

The "beige book," a report that compiles information on economic activity in the country eight times a year, was based on data between February and the beginning of April.

The Fed plans not to move interest rates further in the US "in the remainder of the year," according to the minutes of the monetary policy meeting last March, in response to the domestic slowdown of the end of 2019 and the lower-than-expected growth in Europe and China.

At the March meeting, the Federal Open Market Committee (FOMC) decided to keep the price of money between 2.25% and 2.5% and insisted on a "patient" approach in the face of future increases.

The US central bank lowered its economic outlook in the US this year to 2.1%, compared to 2.3% at the beginning of the year, after 2.9% registered in 2018, while predicting that inflation would remain around the annual target of 2%.

The next monetary policy meeting of the Fed will take place on April 30 and May 1.


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