A report from the Federal Reserve (US central bank) showed that the US economy grew at a modest pace between mid-May and mid-June, while the Fed struggled to curb inflation, which hit a 40-year high.
The bank released its latest report to monitor the state of the economy as it continues to aggressively raise interest rates to curb inflation, but it also raises recession worries.
The U.S. Department of Labor said earlier Wednesday that “consumer prices recorded their highest level in nearly 41 years and stood at 9.1 percent year-on-year in July, driven by higher costs for gasoline, groceries, rent and other items.”
The Fed said, based on a survey it conducted in 12 regions through June 13, that “several regions reported increasing signs of slowing demand, and contacts in five regions indicated concerns about an increased risk of a recession.” Fed policymakers are closely monitoring the reaction of business contacts across the country, analyzing the economic outlook.
Source: El Iktisad
