The Federal Reserve (Fed, the American central bank) of Atlanta informed this Friday (15) that its “GDPNow” model for the growth of the United States started to predict a contraction of 1.5% of the Gross Domestic Product (GDP) of the country in the second half. Last week, the predicted decline was 1.2%.
In a statement, the district of the American BC also points out that, after recent data from various official bodies, expectations for real growth in personal consumption spending and growth in gross domestic private investments in the second quarter were revised to, respectively, + 1.5% and -13.8%.
The Atlanta Fed points out that this model is not an official district forecast, but an estimate based on available economic data for the quarter in focus, with no subjective adjustments and only the mathematical results of the model.
Fees
According to San Francisco Federal Reserve Chair Mary Daly, the US central bank is not worried about exaggerating the US monetary tightening process, as the US economy remains “strong” and the chance of a recession “not high”, in his view.
The leader, who does not have the right to vote at meetings of the Federal Open Market Committee (FOMC, its acronym in English) this year, highlighted the pace of hiring in the labor market. In this context, the Fed should be concerned about inflation, which at the moment is “too high”, according to Daly.
Source: CNN Brasil
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