Federal Reserve Acknowledges Economic Challenges Amid GDP Decline

According to Odaily, Federal Reserve officials noted in their May policy statement that the GDP growth for the first quarter turned negative. Despite this, the Federal Reserve's policy committee still considers the underlying economy to be strong. They identified significant fluctuations in trade statistics as the primary cause for the GDP contraction in the first quarter, with imports surging ahead of new tariffs. The statement highlighted that, although net export volatility affected the data, recent indicators suggest that economic activity continues to expand at a robust pace. However, the new language in this month's policy statement also acknowledges that the risks of rising unemployment and inflation have intensified.