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The FRBSF University Symposium provides an overview of current U.S. economic conditions, highlighting key indicators such as a deceleration in GDP growth, slowing consumer spending, and a notable decrease in residential investment—the largest drop since 1991. Despite these challenges, inflation remains under control, with the Fed Funds Rate at 5.25% and low unemployment rates. The symposium also explores international conditions, noting improvements in the current account and trade deficits while cautioning against rate increases that may disrupt market corrections.
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FRBSF University Symposium • Board of Governors • Governor Randall S. Kroszner • Chris Clark • Heidi Downs • Travis George • Jim Mignano • Finian Small
FRBSF University Symposium Current US Economic Conditions • Deceleration of GDP growth • Consumer spending slowing down • Decrease in residential investment • Largest decrease since 1991 • Inflation is still under control
FRBSF University Symposium Current US Economic Conditions
FRBSF University Symposium Current US Economic Conditions • Fed Funds Rate: 5.25% • Low unemployment • Personal income increased
FRBSF University Symposium Current International Conditions • Improving current account • Shrinking trade deficits • Worsening capital account • Shrinking capital and investment net inflow surpluses
FRBSF University Symposium Summary of Decision • Domestic conditions are stable • International markets are moving toward equilibrium • A rate increase would only serve to disrupt natural market corrections