'Resilient' US economy growth offers 'relief' even though 'coast is far from clear': experts
The United States' economy is improving and level of inflation is decreasing, according to Thursday reports from BBC.
According to the Labor Department, BBC reports, "the price of eggs has dropped 13.8% since last year - the biggest drop since 1951. Gasoline prices are down nearly 20%.Overall, at 4%, inflation is the lowest it has been since March 2021."
Furthermore, the inflation rate has been on a steady decline for 11 months, the Department says, adding, the "pace has held steady for three months in a row."
BBC also reports the Department of Commerce "said the latest data showed the US economy grew at an annual rate of 2% in the first three months of the year," placing "growth at 1.1% in the January to March period."
Alexandra Wilson-Elizondo, who works with Goldman Sachs Asset Management commented, "Today's... number was a relief for the market, as the data met expectations, confirmed the dis-inflationary trend, and re-affirmed current market pricing of a Fed pause tomorrow. However, the rate of dis-inflation remains incompatible with the Fed's 2% target."
BBC notes the numbers still point to the fact "that prices in many parts of the economy are still rising steadily - and far faster than the 2% rate the Fed considers healthy," including "measures of housing costs, including rents, continue to climb sharply."
Jerome Powell, head of the Federal Reserve, mentioned he believes "the current policy" could be doing more to "combat inflation."
READ MORE: 'Opportunistic' corporations are fluffing inflation to 'pad their profits': report
He said during a panel event in Portugal earlier this week, "Although policy is restrictive, it may not be restrictive enough and it has not been restrictive for long enough."
Similarly, Fitch chief economist, Brian Coulton, said, "Don't be fooled by the sharp fall in headline inflation, which is nearly all explained by falls in gasoline prices. These numbers show underlying inflationary pressures are still stubbornly high."
Moody's Analytics' senior director, Scott Hoyt, commented, "The economy remains admirably resilient, and odds of a recession beginning this year are receding. But the coast is far from clear."
READ MORE: Fox News freaks out after inflation drops to lowest level in 2 years
BBC's full report on the economy is available at this link. BBC's inflation report is here.
