“Growth looks like it’s maybe moderating a bit, consumer spending moderating a bit, but still at a solid pace,” Fed Chair Jerome Powell said during a press conference.
by Jim Tyson
CFO Dive
Since Fed officials last met in January, consumer surveys and economic data have flashed warning signs of rising inflation risks and slowing growth.
Consumer spending shrunk 0.5% in January and retail sales last month rose a lower-than-expected 0.2%.
Consumer sentiment has slumped in recent weeks and expectations for higher price pressures have increased, according to surveys by the Conference Board and University of Michigan.
The dual risk of weakening growth with rising inflation — or “stagflation” — stems primarily from policy shifts by the Trump administration, including higher tariffs, widespread layoffs of federal employees and plans for mass deportations, according to economists.