Shocking data in Fed growth report

The Fed released the January edition of the “Beige Book” report, which includes assessments of the current state of the US economy.

In the report, which was prepared with analyzes of the bank’s 12 branches, it was indicated that general economic activity has not changed since November.

Noting that “low growth” is expected in the economy in the coming months, the report said consumer spending rose slightly as some retailers increased sales during the holiday season.

PURCHASING POWER CONTINUES TO DECLINE

“Other retailers noted that high inflation continues to reduce the purchasing power of consumers, particularly among low- and middle-income households,” the report said. evaluation was included.

In the report, which indicated that in many regions, growers reported a moderate decline in activity, it was emphasized that supply chain disruptions were eased.

The report noted that the housing market continued to weaken and demand for mortgages (home loans) remained weak. It was also noted in the report that high borrowing costs began to suppress business lending.

Noting that employment continued to grow at a moderate to moderate pace in most regions, the report stated that labor supply increased in some regions, but companies continued to struggle to fill vacant positions.

PRICE INCREASE

Wage pressures remain high due to the consistently tight labor market, according to the report.

In the report, which also referred to price increases, it was noted that in most regions, price increases increased at a moderate or moderate rate, but this rate slowed down in many regions.

The report noted that price increases are expected to be more moderate next year. (AA)