Hidden in the announcement of a quarter-point increase in interest rates, the chair of the Federal Reserve said today that the Fed’s staff economists have backed off their prediction that the US economy will slip into a recession, Forbes reports.
In April, Fed staff predicted a “mild recession” that would be “neither deep nor prolonged.” However, continued “resiliency in the economy” lead Fed economists to revise their previous skepticism about American growth. Jerome Powell also noted that he’s seen signs of “disinflation” although that has not impacted key indicators like job creation up to this point.