Fed's Beige Book Indicates Modest-To-Moderate Economic Expansion
December 05 2018 - 8:24AM
RTTF2
Most of the twelve Federal Reserve districts reported that their
economies expanded at a modest or moderate pace from mid-October
through late November, according to the Fed's Beige Book released
on Wednesday.
The Beige Book is a compilation of anecdotal evidence on
economic conditions in the twelve Fed districts released shortly
before the central bank makes its decision on monetary policy.
The Fed noted both the Dallas and Philadelphia districts saw
slower growth compared with the prior Beige Book period, while the
St. Louis and Kansas City districts saw just slight growth.
The report said consumer spending held steady on balance, as
district reports on growth of non-auto retail sales appeared
somewhat weaker but auto sales tended to improve, particularly for
used cars.
While tariffs remained a concern for manufacturers, a majority
of districts continued to report moderate growth in the sector.
The Fed also said labor markets tightened further across a broad
range of occupations, with over half of the districts citing firms
for which employment, production, and sometimes capacity expansion
had been constrained by an inability to attract and retain
qualified workers.
On the inflation front, the Beige Book said prices rose at a
modest pace in most districts, although a few noted moderate
increases. Nearly all districts reported that input costs rose
faster than final goods prices.
The report noted optimism in some districts has waned, as
contacts cited increased uncertainty from the impacts of tariffs,
rising interest rates, and labor market constraints.
The release of the Beige Book comes as the Fed is widely
expected to raise interest rates by a quarter point at its next
monetary policy meeting later this month.
US Dollar vs INR (FX:USDINR)
Forex Chart
From Apr 2024 to May 2024
US Dollar vs INR (FX:USDINR)
Forex Chart
From May 2023 to May 2024