Published on Wednesday evening, the Fed’s Beige Book points out that prices have remained high but are tending to moderate. Labor market conditions are tight, but with some improvement in labor availability.
Price levels remain high, but the rise is more moderate, points out the Fed’s Beige Book | Photo credits: Istock
In its Beige Book, a preparatory document for the upcoming September 20-21 monetary policy meeting, the US Federal Reserve observes that economic activity has remained broadly unchanged since early July, with five branches recording slight growth to modest and five others registering a slight to modest slowdown.
Price levels remained very high, but nine Fed branches reported some moderation in their increase. Food, rent, utilities and hospitality services are the segments where price increases have been the strongest. Lower fuel prices and lower overall demand have eased cost pressures, particularly in freight transportation.
Employment, meanwhile, grew at a modest to moderate pace in most branches across the country. Overall, labor market conditions remained tight, although almost all pointed to some improvement in labor availability.
A 75 basis point rise in key rates is the scenario most widely expected by the market.