New FOMC language: Risks of rising unemployment and inflation have increased

According to ChainCatcher, Federal Reserve officials stated in their May policy statement that first-quarter GDP growth turned negative. However, the Federal Reserve Policy Committee still believes the underlying economy is strong. They observed that significant fluctuations in trade statistics were the primary reason for GDP contraction in the first quarter, as imports surged before new tariffs. "Despite the volatility in net exports affecting the data, recent indicators suggest that economic activity continues to expand at a robust pace," the statement read. Nevertheless, in the new language of this month's policy statement, officials also acknowledged that "the risks of rising unemployment and inflation have intensified".