The Fed’s Beige Book has noted that US economic activity is still under pressure and that “the outlook for future economic growth remained generally weak”.
The Fed released its latest summary of feedback from business contacts nationwide as policymakers are considering whether to proceed with a third straight 75-basis-point interest rate hike at FOMC’s September 20-21 policy meeting, or go with a still larger-than-usual 50-basis-point rise in its battle against hot inflation.
Key Quotes
The outlook for future economic growth remained generally weak, with contacts noting expectations for further softening of demand over the next six to twelve months.
Economic activity was unchanged, on balance, since early july, with five districts reporting slight to modest growth in activity and five others reporting slight to modest softening.
The outlook for future economic growth remained generally weak, with contacts noting expectations for further softening of demand over the next six to twelve months.
Employers noted improved worker retention, on balance. Price levels remained highly elevated, but nine districts reported some degree of moderation in their rate of increase.
Wages grew across all districts, although reports of a slower pace of increase and moderating salary expectations were widespread.
Tags Fed's Beige Book inflation labour PRICE PRESSURES
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