U.S. Economics Insights
Stubborn Services Inflation Keeps Fed on Guard
June 01 2023Key Insights
- U.S. economic growth in the first quarter slowed notably from late 2022, but this was mainly driven by inventory declines.
- The labor market also appears quite resilient, though layoffs have spread beyond the tech sector.
- We’ll need to see more evidence of a deceleration in services inflation to have confidence in overall inflation returning to 2%.
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