Federal Reserve's Smith: Inflation remains the biggest risk, but the U.S. economy shows resilience

ME News report: On May 14 (UTC+8), the Federal Reserve’s Schmid said on Thursday that inflation remains the biggest risk facing the U.S. economy. Despite numerous challenges, however, the U.S. economy continues to show “remarkable resilience,” and the labor market overall remains stable. In remarks prepared for a speech at a banking industry conference hosted by the Kansas City Fed, Schmid said: “I believe that persistent inflation is the most urgent risk facing the current economy. Although inflation has clearly fallen from its peak, it is evident from my conversations with leading business figures in the tenth district that inflation levels are still too high.” Schmid added: “Despite the many challenges currently facing the U.S. economy, it also demonstrates remarkable resilience. Geopolitical developments continue to bring uncertainty. While the U.S. is less vulnerable than in the past to disruptions in global energy, higher oil prices will still weaken households’ consumption capacity and raise business costs. However, even in the face of these headwinds, the fundamentals of the U.S. economy and the economy of the tenth district remain sound.” (Source: PANews)