The Fed's latest Beige Book of anecdotal reports from businesses across the country showed that the U.S. economy continued to grow at a modest pace in June, but was faced with downsides from labor shortages and rising prices.
Here are the headlines from the document:
- Prices increased at a modest pace throughout the period.
- Employers reported that they continue to have difficulties in finding workers.
- Economic expectations for the coming months continued to be in the direction of slow growth in general.
- Labor demand remained healthy during the survey period.
- Overall economic activity has risen slightly since the end of May.
- Employment rose moderately during this period, with some job growth in most regions and labor demand remained healthy.
- Some regions recorded a slowdown in the rate of price increase.
- Authorities in many regions have reported that wage increases have returned to or approaching pre-pandemic levels.
- Prices rose modestly overall, with a few regions recording some slowdown in growth rate.
- Price expectations for the next few months are generally stable or lower.
The Beige Book is one of the tools the FED uses to assess the state of the economy and determine monetary policy. The next Fed meeting will be held July 27-28, when policymakers will decide whether to maintain their ultra-congruent stance or start reducing their large bond-buying program.
*Not investment advice.