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In its  semi-annual report to Congress,  the  Federal Reserve said that the recent “soft readings” on inflation appear to reflect transitory influences. Meanwhile, the US Dollar Index continues to cling to its NFP-inspired gains near 97.40.  Below are some key takeaways as reported by Reuters.

“U.S. economic activity continued at “solid pace” in early 2019, repeats will act “as appropriate” to sustain expansion -semi-annual monetary policy report.”

“Data suggests “moderation” in second-quarter gdp growth due to weak business investment and slowdown in global trade flows.”

“Increased U.S. and global tariffs have been “Material” to slowdown in international trade, with uncertainty around trade policy weighing on investment.”

“Labor market continued to strengthen in first half of this year, with average job gains of 165,000 per month and moderate wage increases.”

“Asset valuations remain “somewhat elevated,” notes rapid increase in business borrowing but says financial system overall remains resilient.”

“Business investment spending appears to have decelerated sharply this year.”

“Consumer sentiment remains strong and borrowing conditions for households remain generally favorable.”

“Bank credit to businesses as well as commercial and residential real estate continued to grow this year but at a slower pace than in second half of 2018.”