The Federal Reserve acknowledged recent economic challenges as GDP growth declined for the first quarter, according to a May policy statement from Odaily. Despite this downturn, the Fed’s policy committee maintains a positive view of the overall economy. The primary culprit behind the GDP contraction in the first quarter was cited as significant fluctuations in trade statistics, with imports exceeding new tariffs. This report highlighted that while net export volatility impacted the data, recent indicators suggest continued robust economic expansion. However, this month’s policy statement also acknowledges a heightened risk of rising unemployment and inflation.