Federal Reserve: The American economy slowed in the first quarter economy

The Federal Reserve Chairman, Jerome Powell, said on Wednesday that economic growth in the United States appears to be slowing amid weak growth in consumer spending and a decrease in confidence, in addition to an accelerated flow of imports to avoid customs duties may affect the estimates of GDP.

“Despite the increasing fog and the risks of relegation, the American economy is still in a strong situation … but the data currently available indicate that growth slowed in the first quarter compared to a strong pace recorded last year,” Powell added in statements to a speech at the Economic Club in Chicago.

Powell said, referring to the rapid transformations in commercial policy that analysts expect the growth of growth throughout the year, while “families and companies’ data indicates a sharp decrease in confidence and increasing fog about expectations, which reflects largely related commercial policy concerns.”

He renewed the indication that the impact of these and other transformations “is still formed” but it is more likely to be “greater than” expected to look at the scope of customs duties that Donald Trump seems to prefer, despite the possibility of eventually cutting them through negotiations between the United States and other countries.

Useful expectations

Powell added that the Federal Reserve may keep the interest rate constant at the present time “to wait for more clarity before considering any amendment to the monetary policy.”

The US Central Bank has been on the interest rate in a range of 4.25% and 4.50% since December after a series of discounts late last year.

Since then, the pace of progress has slowed towards the return of inflation to the pace it targets at 2%.

Powell said that although the indicators of inflation expectations in the near -term “have risen at a significant pace” due to customs duties, the expectations of the distant term that the council closely follows are still compatible with the purpose of inflation.

Powell said the labor market is still “in a strong state” and “at the maximum employment or near it.”