Economic indicators released in May and June point to continued moderate growth and a mostly unchanged outlook for the U.S. The economy is approaching full employment, long-term inflation expectations remain anchored despite a recent dip in inflation, and real GDP is projected to grow at a moderate rate in 2017 and 2018.

The second revision for real GDP growth in first quarter 2017 shifted upward from 0.7% to 1.2%—weak relative to 2.1% in fourth quarter 2016. However, forecasts point to stronger growth beginning in the current quarter.