GJ Town India

  FoMC eye to achieve employment & inflation at the 2%   Recent indicators suggest that economic activity has continued to expand at a solid pace. Job gains have slowed, and the unemployment rate has moved up but remains low. Inflation has made further progress toward the Committee's 2 percent objective but remains somewhat elevated.   The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. The Committee has gained greater confidence that inflation is moving sustainably toward 2 percent, and judges that the risks to achieving its employment and inflation goals are roughly in balance. The economic outlook is uncertain, and the Committee is attentive to the risks to both sides of its dual mandate. In light of the progress on inflation and the balance of risks, the Committee decided to lower the target range for the federal funds rate by 1/2 percentage point to 4-3/4 to 5 percent. In considering additional adjustments t

The plans for reducing the Federal Reserve's Balance Sheet Size   In a statement US Federal Reserve issues FOMC & said, although overall economic activity edged down in the first quarter, household spending and business fixed investment remained strong. Job gains have been robust in recent months, and the unemployment rate has declined substantially.”   Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher energy prices, and broader price pressures. The invasion of Ukraine by Russia is causing tremendous human and economic hardship.   The implications for the U.S. economy are highly uncertain. The invasion and related events are creating additional upward pressure on inflation and are likely to weigh on economic activity. In addition, Covid-related lockdowns in China are likely to exacerbate supply chain disruptions. The Committee is highly attentive to inflation risks. The Committee seeks to achieve maximum employment and i

The risk of slowing the economy & causing a recession   Inflation is at a 40-year high but isn’t hitting all consumers as hard as top-line numbers might suggest, National Retail Federation Chief Economist Jack Kleinhenz said today. Nonetheless, consumer worries about rising prices could become self-fulfilling if workers demand higher wages to compensate and will play a role in the Federal Reserve’s efforts to bring inflation under control.    “After decades of relatively low levels, inflation is on everyone’s mind and has been making consumers and businesses miserable as prices have picked up dramatically over the past year,” Kleinhenz said. “However you measure it, inflation has become a powerful force and plays a key role in the nation’s economic outlook.”    “While actual price gains are expected to slow down in the coming months as they lap relatively high readings from the year before, the Fed is concerned about the risk of an unwanted jump in inflation expectations. If

Fed would keep keen watch to ensure muted inflation! Despite Goldman, Forbes, economic analysts feared a slower US economy in 2019, Vice Chairman and member of the Board of Governors, US Federal Reserve, Richard H. Clarida said, “In terms of the economic outlook, ongoing momentum heading into this year indicates that that above-trend growth is likely to continue in 2019.” He was speaking on Monetary Policy Outlook for 2019 at the Money Marketeers of New York University. As we begin 2019, the initial conditions for the real economy are favorable. Through the first three quarters of last year, gross domestic product growth averaged 3.2 percent. Private-sector forecasts as well as our Summary of Economic Projections indicate that, when the data for the fourth quarter are released, they will show the economy likely grew at 3 percent or perhaps a little faster in 2018 for the year as a whole. If so, economic growth in 2018 would be the fastest annual growth rate recorded