Fed: US economic activity at risk from geopolitical risks

According to the Federal Reserve, the geopolitical situation may pose a threat to the U.S. economy. This is stated in the published minutes of the January meeting of the regulator, reports the agency "Prime".

Geopolitical tension is one of several factors that can adversely affect the U.S. economy - in particular, contribute to a significant drop in demand and economic activity. The slowdown in GDP growth in a number of foreign countries against the backdrop of the current situation will also have negative consequences for the States, the document says.

Other risks are a decline in household incomes, which could lead to a stronger decline in consumption than expected, as well as the continuation of tight monetary policy for a longer period, according to the Fed. However, the central bank leaders still emphasized that they do not expect to cut the key rate until they have more confidence that inflation is moving towards the 2% target.