Federal Reserve Sees U.S. Economic Growth as Steady but Slow
In a similar vein, the Fed said banks reported a broad decline in loan demand during the first quarter
of 2017, “even as lending standards on such loans were reported to be basically unchanged.”
The Fed publishes the assessment, called the Monetary Policy Report, twice a year, in the winter and the summer.
“Providing more clarity on the future direction of government policy is highly desirable.”
The report noted, however, that business investment “rose robustly” in the first quarter, thanks
to increased spending on drilling and mining equipment, which could indicate a shift.
The low level of investment may be one reason for the slow pace of productivity growth, an average
annual pace of just 1 percent, about half the pace during the period from 1990 to 2004.
A measure of hourly compensation that includes wages, salaries
and benefits rose at an annual pace of 2.25 percent over the last four quarters, the Fed said.
By BINYAMIN APPELBAUMJULY 7, 2017
WASHINGTON — The Federal Reserve’s view of the American economy, which it updated Friday in
a semiannual report to Congress is out: steady growth still impeded by a range of problems.
