Fed Beige Book: Overall economic activity saw increase early 2023

The US economy expanded marginally from January through late February, and price rises persisted widely, according to the Federal Reserve’s Beige Book released on Wednesday. However, businesses said that inflation has moderated and that they anticipate it to do so throughout this year.

The Federal Reserve Bank of New York created this report using data gathered on or before February 27, 2023. Even while price rises slowed down in many districts, there was still widespread inflationary pressure.

Amid heightened uncertainty, contacts did not expect economic conditions to improve much in the months ahead. Six districts reported little or no change in economic activity since the last report, while six indicated economic activity expanded at a modest pace.

Overall, credit requirements tightened, loan demand decreased, and delinquency rates increased slightly. Following the announcement, the US dollar held firm near 105.70, according to the DXY index, but it had dropped from three-month highs achieved earlier on Wednesday after Fed Chair Jerome Powell failed to reveal any big shocks during his second day of testimony before Congress. At the conclusion of the week, US nonfarm payrolls will be the focus.