Economic Buzz: Fed Beige Book Finds Rising Recession Concerns

14 Jul 2022 , 09:27 AM

With the Federal Reserves next monetary policy decision looming toward the end of the month, the central bank released its latest Beige Book. The Beige Book, a compilation of anecdotal evidence on economic conditions in each of the twelve Fed districts, noted U.S. economic activity has expanded at a modest pace since mid-May. Several districts reported growing signs of a slowdown in demand, with contacts in five districts noting concerns over an increased risk of a recession. Most Fed districts reported that consumer spending moderated as higher food and gas prices diminished households discretionary income. On the inflation front, the Fed noted substantial price increases were reported across all districts, at all stages of consumption, although three quarters noted moderation in prices for construction inputs such as lumber and steel. The report also said most districts continued to report modest to moderate job growth, although nearly all districts noted modest improvements in labor availability amid weaker demand for workers, particularly among manufacturing and construction contacts.Powered by Commodity Insights