“Beige Book” reflects some easing of inflation.
On Wednesday, the Federal Reserve reported that economic activity expanded modestly in recent weeks although it remains flat in some regions and declining in others. The report showed business firms growing more pessimistic about the outlook.
The Fed did say its latest collection of anecdotes from contacts across its 12 districts, known as the “Beige Book,” noted inflation pressures had eased somewhat. They feel their aggressive interest rate hikes may have started to turn the tide against the highest inflation in 40 years.
“Some contacts noted solid pricing power over the past six weeks, while others said cost pass-through was becoming more difficult as customers push back,” said the report, which was compiled by the Dallas Fed from contributions received through October 7. “Looking ahead, expectations were for price increases to generally moderate.”
That was a notable contrast to the previous report from late summer that had concluded most Fed contacts then had “expected price pressures to persist at least through the end of the year.”
As the Lord Leads, Pray with Us…
- For Chairman Powell to be led by the Lord as he oversees the Federal Reserve.
- For members of the Federal Reserve to have discernment as they make recommendations and take action regarding interest rates and inflation.
- For the president and his administration as they implement economic strategies and policies.
Sources: Newsmax, Bloomberg
