Companies are hiring new employees, real estate prices are rising and consumer spending is rising more than forecast. The US economy is not in danger of a sharp slowdown, which many analysts predicted due to its shift. Federal Reserve in restrictive monetary policy. And this amazing resilience of the economy is both good news and bad news.

The resilience of the economy may mean that the Fed will be able to softly contain inflation by slowing price increases, but not reducing America in recession. But if businesses continue to raise prices and demand remains strong, inflation could remain high, forcing consumers to pay more for hotels, food and childcare, and the Fed to do more to curb growth. Perhaps policy makers need more time to realize that it is more likely that they do not overreact and cause unnecessary pain, and do not sit back and let inflation take over.

It is not in danger of a sharp slowdown, which many predicted after the Fed’s rate hike.

Investors are betting that the Fed will keep interest rates unchanged at its June 13 and 14 meeting and then raise them again in July. But they can still fall out. All week, markets have been betting that the Fed will raise interest rates again. In short, the messages are mixed and the discussions within the Fed are intense. President Jerome Powell and his likely successor, Philip Jefferson, have said they will delay rate hikes to see how they have already affected the economy. But even parts of the economy that normally slow down when interest rates rise have so far offered strong resistance to increases.

Fed officials are watching the labor market to see if it has been affected by higher interest rates. There are signs that businesses are starting to cut hiring as jobless claims hit their highest level since October 2021 last week. Inflation remains a key factor shaping the Fed’s plans this month. The latest estimates indicate a decline in inflation to 3.3% by the end of the year. Economists expect May data to show further easing, which will convince Fed policymakers to leave interest rates unchanged.