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

ME News Report, May 14 (UTC+8), Federal Reserve’s Smith on Thursday stated that inflation remains the biggest risk facing the U.S. economy, but the U.S. economy continues to show “remarkable resilience” in the face of numerous challenges, and the labor market remains generally stable. In a speech at a banking industry conference hosted by the Kansas City Fed, Smith said: “I believe that persistent inflation is the most urgent risk currently facing the economy. Although inflation has significantly retreated from its peak, it is clear from my conversations with top executives in the tenth district that inflation levels are still too high.” Smith stated: “Despite the many challenges currently facing the U.S. economy, it also demonstrates remarkable resilience. Geopolitical tensions continue to bring uncertainty. While the U.S. is less susceptible to global energy disruptions than in the past, higher oil prices will still weaken household consumption and increase business costs. However, even in the face of these headwinds, the fundamentals of the U.S. and the tenth district economy remain solid.” (Source: PANews)