The US economy is strong, but there is still something to be desired

Federal Reserve Chairman Jerome Powell said today that the US economy is strong with a low risk of recession, but noted that some sectors did not feel the positive effect of economic expansion optimally.

"Today, data on the economy at national level show that it is strong". "Powell said to students today at Mississippi Valley State University. "Unemployment has been approaching its lowest levels in 50 years, and economic activity has risen steadily, but some sectors and areas have not yet felt the desired positive effect."

The federalists signaled last month that at least for the time being they would refrain from raising interest rates by being ready for "flexible" decisions, especially when the bond portfolio shrinks. The change in the mood of the Fed led to the launch of a new rally in the financial markets. Also, Powell, said he "sees no risks of recession have increased".

Growth for the US economy in 2018 was strong, but it is expected to slow down sometime this year, along with the slowdown in the global economy and the declining effect of fiscal stimulus. Still, the labor market remains unchanged, with unemployment at 4%.

The central bank picked up four times the base interest rate last year from 2.25% to 2.50%, reaching levels that economists consider to be neutral - neither generate growth nor slow growth. Investors are already looking for the Fed's next move.

Source: Bloomberg Finance L.P.

Graphs: Used with permission of Bloomberg Finance L.P.

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