A report from the Federal Reserve (the US central bank) showed that the US expanded at a modest pace in the period from mid-May to mid-July, while the central bank struggled to reduce inflation that It reached its highest level in 40 years.
According to Arabiya Net, the bank issued its latest report to monitor the state of the economy, while it is moving forward with aggressively raising interest rates in order to curb inflation, but it also raises fears of recession.
The US Department of Labor said on Wednesday that consumer prices rose 9.1% in June year-on-year, driven by higher costs for gasoline, food, rent and other items, Reuters reported.
The US central bank said, based on a survey it conducted in 12 regions as of July 13: Several regions reported increasing signs of slowing demand, and contacts in 5 regions indicated fears of an increased risk of recession.
Federal Reserve policymakers are closely watching reactions from business contacts across the country as they analyze the economic outlook.
The report also noted that significant price increases were reported in all regions, and that most contacts expect pricing pressures to continue at least until the end of the year.
