The U.S. Federal Reserve said it hopes to see 'maximum employment' but said tight credit conditions could impact hiring.
The U.S. Federal Reserve's Federal Open Market Committee released its observations on Wednesday of the state of the U.S. economy, which appeared to be a mixed bag.
The report said"tighter credit conditions for households and businesses are likely to weigh on economic activity, hiring, and inflation. The extent of these effects remains uncertain."The Fed said indicators show U.S. economic activity has been"expanding at a moderate pace." The committee said gains in the U.S. job market have been"robust in recent months," with the unemployment rate remaining low.
A recent Bureau of Labor Statistics report released earlier in July found that as worries of a looming recession persisted, the unemployment rate did not remain the same for all groups. The Fed said it hopes to see inflation at a rate of about 2% over the long run and to achieve"maximum employment."
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