inflation, economy grow slowly: Fed
The Fed’s Beige Book, known as the Summary of Commentary on Current Economic Conditions, reported on Wednesday the U.S. economy is growing at a slow pace. The Beige Book said such yield was due to inflation rise coupled with job growth decline.
Based on anecdotal information collected by the Fed’s 12 reserve banks through Jan. 4, the report concluded the economy and inflation grew modestly as a result of slowed employment growth in most districts.
The decline in the labor market was attributed to the continued rising of COVID-19 cases despite the incipient nationwide inoculation. More so, restrained business optimism and weaker job growth seem to be affecting consumer spending. In effect, e-commerce continues to be the lone bright spot.
The Beige Book is a report produced and published by the Federal Reserve containing a qualitative review of economic conditions. The Fed publishes the Beige Book eight times annually before meetings held by the Federal Open Market Committee (FOMC).