During a recent interview with Reuters, US Treasury Secretary Janet Yellen spoke about the weaker-than-expected first-quarter GDP reading and how it does not reflect the overall health of the US economy. Yellen emphasized that despite this setback, inflation is moving toward a more normal level, and the job market and consumer spending remain robust.
The Commerce Department reported that the US economy grew at an annualized rate of 1.6% in the first quarter, which was slower than expected but still strong. Despite this, economic growth continues to be impressive with a solid job market and strong consumer spending.
Inflation in the US has slowed down significantly, but progress halted due to rising gas prices and high services and shelter costs. Federal Reserve officials have stated that bringing down inflation will be challenging, and they expect to hold interest rates steady in their upcoming meeting.
Geopolitical tensions are on the rise worldwide with conflicts in Ukraine and the Middle East. Additionally, the relationship between China and the US has become increasingly strained, leading to President Joe Biden calling for a review of tariffs on Chinese steel and aluminum. The outcome of this review is still uncertain, but actions may be taken to enhance the effectiveness of tariffs based on its findings.