By Michael S. Derby

NEW YORK Risks to the economic outlook in a time of a rapid Federal Reserve rate increases remains high, even as it eased a bit, according to a report Wednesday from the Federal Reserve Bank of New York.

The regional central bank arm made its finding as part of a new data series that seeks to measure the various risks facing the economy, which it explained in a blog post on its website.

The bank said changing financial conditions are key to the work, and noted that “downside risk to real activity have receded over the course of 2023 but remains elevated.”

It also said upside risks to higher unemployment rose substantially last year but this year have also abated, while still remaining “elevated.” The report also said Fed actions have reduced the risk of higher inflation.

(Reporting by Michael S. Derby)