Kansas City Fed Outlook Considers Strength & Risks

Here's why we're sharing this . . .

Most financial talkers are scam artists trying to sell junk.

Even worse . . . Online chatter is only looking to manipulate markets and find more suckers to fleece.

And so . . .

The options for REAL financial news are few and far between.

Even the local biz mag is mostly hype looking to promote sketchy schemes.

And so . . .

Again . . . We remind locals that the Fed is the BANK OF BANKS and their words are authoritative and worthy of consideration.

So . . . We're sharing their latest note amid a great deal of market volatility . . . 

"We are entering a challenging period from a position of strength. The economy has shown a lot of momentum and has repeatedly brushed off periodic recession fears in recent years. Over the past two years, GDP growth has averaged just under 3 percent, almost ½ percentage point faster than in the decade before the pandemic. Recent productivity growth, a measure of how much can be produced with an hour of work and a key measure of economic health, has also picked up. And perhaps most encouragingly, the labor market has remained robust. Last week’s report for March showed continued strength in hiring and an unemployment rate of 4.2 percent, not far off from historic lows and close to what many observers believe is the full employment rate . .  ."

However . . .

"The current policy and economic environment has become considerably more complicated. The recent tariff announcements have elevated economic uncertainty and have coincided with a decline in consumer sentiment and increases in near-term inflation expectations. Relative to earlier this year, and in line with conversations I have had with contacts in my district, it appears as though we have seen a marked increase in the upside risks around inflation along with elevated downside risks to the outlook for employment and growth. Based on what I have heard from our business contacts, there is a growing possibility that in setting policy the Fed will have to balance inflation risks against growth and employment concerns."

Read more via www.TonysKansasCity.com link . . .

Kansas City Fed: Remarks on the Economic Outlook