federal reserve Officials expect economic activity to slow down for the remainder of the year, according to new economic forecasts released this week. Data shows authorities now expect the US to post 0.4% growth this year, up from the 0.5% growth rate they forecast in December. Bloomberg published the story first.

At first glance, it doesn’t seem like a huge downgrade, but it’s important to consider this number given the strength of the economy seen so far in the first quarter Robin BrooksChief Economist of International Institute of Finance in Washington, after to a Bloomberg report. “The Fed is gearing up for a recession,” Brooks said.

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Revisions: The unemployment rate has been revised down to 4.5% from the previous 4.6% Personal Consumables Inflation forecast for the year has been revised upwards to 3.3% from an estimated 3.1% in December.

The PCE price index reflects changes in the prices of goods and services purchased by consumers in the United States. The central bank monitors the PCE inflation very accurate.

The PCE core inflation forecast is now at 3.6% versus the previous forecast of 3.5%. The Federal Funds Rate forecast for 2023 was kept in line with the previous forecast of 5.1%.

According to the summary, these forecasts are associated with considerable uncertainty. The economic and statistical models and relationships used to produce economic forecasts are necessarily imperfect descriptions of the real world, with the abstract adding that the future trajectory of the economy can be affected by myriad unforeseen developments and events.

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