Economic activity in the United States softened at the beginning of the year, according to data released Monday by the Federal Reserve Bank of Chicago. The Chicago Fed National Activity Index (CFNAI), a broad measure of economic momentum, declined to
The Chicago’s Fed barometer of economic activity suggests above average growth in February.
The improvement in the index is the latest sign that the slowdown in economic activity in October may have been short-lived, suggesting that the economy may not have slowed as much as expected in the fourth quarter. Forecasts that the Fed is likely to start cutting rates as early in March depend, in part, on economic growth slowing.
The economic slowdown that first appeared in September got worse in October, a key gauge from the Chicago Fed showed Tuesday.
Still think the stance of monetary policy is restrictive?
An acceleration of the economy may mean the Fed will have to push harder on the braikes.
Growth slowed in February, with a sharp downtick in the contribution of personal consumption and housing.
The economy slowed in December as supply-chain bottlenecks and rising infections hurt production and retail sales disappointed.
The latest sign that the economy is underperforming in the second half of Biden’s first year in office.
The Federal Reserve Bank of Chicago ended its work with University of Chicago economics professor Harald Uhlig after he was targeted by left-wing peers for criticizing the Black Lives Matter movement and its call to “defund the police.”
Economic growth accelerated and was much stronger than expected in January, according to a basket of indicators collected by the Federal Reserve Bank of Chicago.
