Washington D.C. - The Federal Reserve has revised its outlook for US economic growth downward, attributing the change to increased anxieties surrounding tariffs and their potential impact on the global economy. This announcement follows a period of ongoing trade disputes and reflects the central bank's assessment of the current economic landscape.
Economists at the Fed pointed to several factors influencing their decision, including a slowdown in global demand and uncertainty surrounding future trade policies. These factors are expected to dampen business investment and potentially weigh on consumer spending, two key drivers of economic growth.
"We are closely monitoring the situation and stand ready to adjust monetary policy as needed," said a spokesperson for the Federal Reserve. The central bank's statement acknowledged the complexities of the current economic environment and the challenges in predicting future growth trajectories.
The US president has previously voiced his opinion on the Federal Reserve's interest rate policy, calling for lower rates to boost economic activity. This latest growth forecast is likely to fuel further debate about the appropriate course of monetary policy in the coming months. The Fed's next meeting will be closely watched for any indications of potential policy changes.
Federal Reserve Downgrades US Growth Outlook Amid Tariff Concerns
The Federal Reserve has lowered its forecast for US economic growth, citing rising concerns over tariffs and global economic uncertainty. This adjustment comes as trade tensions continue to impact business investment and consumer confidence. The central bank's decision reflects a cautious approach to monetary policy in the face of potential economic headwinds. The US president has previously urged the Fed to cut interest rates to stimulate growth.
Source: Read the original article at BBC