Economic activity ‘holding steady,’ inflation remains above Fed target

CUNA Senior Economist Dawit Kebede breaks down the latest economic forecast in CUNA’s Economic Update, providing insight into key macroeconomic trends such as the labor market, economic activity, inflation, and the Federal funds rate. He also covers tight credit conditions for business and household loans.

“Economic activity is holding steady, which is stronger than expected at the beginning of the year. That’s mostly because of a strong but moderating labor market,” Kebede said. “Inflation is slowing down from its peak levels but is still above the Federal Reserve’s target of 2%, so as a result the Fed funds rate will remain high until inflation comes down.”

The video and presentation can be found at cuna.org/economics.