CoinVoice recently learned that Fed officials said in their May policy statement that GDP growth turned negative in the first quarter, but even so, the Fed policy committee still believes the underlying economy is strong. They observed that large fluctuations in trade statistics were the main reason why GDP fell into contraction in the first quarter, as imports soared ahead of the new tariffs. "Although fluctuations in net exports have affected the data, recent indicators suggest that economic activity continues to expand at a solid pace," the statement read. However, in the new language of this month's policy statement, officials also acknowledged that "risks of rising unemployment and inflation have intensified."