美联储: AI-related investments drive strong output growth, Iran war uncertainty remains a key risk

Odaily reported that the Federal Reserve's semi-annual report shows that overall US economic activity maintained steady expansion in 2026, primarily driven by high-tech investment and government spending. Factory output grew strongly due to AI-related data center investments, with production capacity continuing to improve. However, the housing market has stalled, and the external economy faces sluggish growth dragged down by Middle East conflicts and tariffs. The labor market remains broadly stable, with both wages and productivity rising, but a slowdown in immigration has led to a decline in labor supply, while small businesses and households still face tighter credit conditions.

Inflation remains high and edged up further in the spring, with asset prices above historical norms. The financial system is generally sound, bank reserves are adequate, and private credit markets continue to function normally despite some redemption pressures. Long-term inflation expectations remain largely anchored around the 2% target, but uncertainty stemming from the war with Iran remains a key risk. (Jin Shi)