WASHINGTON– A survey released Wednesday by the Federal Reserve shows a growing pessimism between companies for the coming months.
“National economic activity grew slightly between early April and mid-May. However, conditions vary by sector and region,” the Fed said in its “Beige Book,” a survey of the country’s companies.
“The outlook became much more pessimistic due to information that shows growing uncertainty and more important risks of deterioration (of the economic situation),” indicated the recent Fed report.
A supposed rebound in prices at the beginning of 2024 (for many economists they have never fallen) led the Fed to delay any interest rate cuts. The Central Bank raised rates to their highest levels in more than two decades to make credit more expensive and thereby cool consumption and investment, which put pressure on prices.
In most regions, companies “noticed that Consumers reject even higher price increaseswhich led to a drop in profit margins, the study further notes.
The responsability
For three years, under Joe Biden government and their erroneous economic policies, the consumers have suffered the collapse of their purchasing power and the collapse of their personal finances in the face of the worst price increase in almost five decades.
After a year and two months of rising and sustained inflation, the Federal Reserve decided to act and raised interest rates 11 consecutive times until they reached the worst record in 22 years (5.25%-5.50%).
The major media outlets, analysts aligned with the White House and Wall Street have been publicly pressuring since the beginning of 2023 for the Federal Reserve to reduce the reference rate, something that it has not done and does not intend to do for now in the face of very high prices that do not They have given in as Joe Biden’s government claims; On the contrary, many have continued to rise.
Source: With information from AFP.
