U.S. Fed upgrades assessment of economic growth: “Expanding at a strong pace”

【Financial News correspondent Lee Byung-chul in New York】 The U.S. Federal Reserve (Fed) has upgraded its assessment of the U.S. economy by one notch. With inflationary pressures persisting and consumer spending and business investment holding steady, attention is also turning to the possibility of another rate hike.
In a statement issued after its regular Federal Open Market Committee (FOMC) meeting on the 28th (local time), the Fed said that U.S. economic activity “is expanding at a strong pace.” This marked an upgrade from the “solid pace” of growth cited in its statement last September.
The Fed said that “uncertainty remains elevated due to geopolitical conditions and other factors, but domestic spending remains resilient,” adding that “productivity growth is strong and capital investment is also robust.” It said job gains were keeping pace with labor force growth and that the unemployment rate had changed little.
The Fed held its benchmark interest rate steady at 3.75%–4.00% a year. However, two of the 12 FOMC members dissented, calling for a 0.25-percentage-point hike. With the U.S. economy maintaining stronger-than-expected growth while price pressures persist, whether the Fed will tighten policy further has emerged as a key factor in future monetary policy.




[email protected] Correspondent Lee Byung-chul Reporter