Free Trial

Fed Sees Downside Growth Risks, Upside Inflation Threat

FED
  • Most Fed participants assessed at the June FOMC meeting risks to the outlook for economic growth were "skewed to the downside." 
  • Most also agreed that "risks to inflation were skewed to the upside and cited several 
    such risks, including those associated with ongoing supply bottlenecks and rising energy and commodity prices." 
  • "Downside risks included the possibility that a further tightening in financial conditions would have a larger negative effect on economic activity than anticipated as well as the possibilities that the Russian invasion of Ukraine and the COVID-related lockdowns in China would have larger-than-expected effects on economic growth."
  • Fed staff continued to project GDP growth would rebound in Q2 and "remain solid for the remainder of the year."
  • Staff revised up headline PCE inflation in the second half of 2022 on stronger wage growth, and sees core PCE at 4.1% in 2022, 2.6% in 2023, and 2.2% in 2024. 
MNI Washington Bureau | +1 202-371-2121 | jean.yung@marketnews.com
MNI Washington Bureau | +1 202-371-2121 | jean.yung@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.