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Fed: Consumer spending appears to have rebounded recently - MonPol Report
Key highlights from the Federal Reserve's semiannual Monetary Policy Report, which contains discussions of "the conduct of monetary policy and economic developments and prospects for the future:"
- Measures of longerrun inflation expectations have been relatively stable, on balance, though some measures remain low by historical standards
- Consumer spending was sluggish in the early part of the year but appears to have rebounded recently, supported by job gains, rising household wealth, and favorable consumer sentiment
- The FOMC continues to expect that, with gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace and labor market conditions will strengthen somewhat further
- The Committee currently expects to begin implementing the balance sheet normalization program this year provided that the economy evolves broadly as anticipated
- Labor market conditions continued to strengthen in the first five months of this year
- Wage growth has been only modest, possibly held down by the weak pace of productivity growth in recent year
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
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