Selected News Reports
Fed Beige Book Indicates Slow Growth
According to a report of regional economies by the Federal Reserve known as the beige book, U.S. growth was weak in the first two months of the year.
"Reports from the twelve Federal Reserve districts generally suggested that growth in economic activity remained subdued in January and February," the report indicated. "Consumer spending remained weak on balance, with a few districts noting a little improvement and others indicating a slight deterioration. Business spending was very soft, with little change in capital spending or hiring plans."
The Fed banks reported mixed construction activity, and slow business loan demand. Delinquencies and defaults rose slightly on some household loans, a few Fed districts reported.
Some of the Fed`s business contacts expressed concern about rising costs of energy and insurance, which they were unable to pass along to consumers, the beige book reported.
"Most districts still described manufacturing activity as weak or lackluster, although half of the reports noted at least some degree of improvement," the reported indicated. "Many reports indicated that geopolitical and economic uncertainties were constraining consumer and business spending and tempering near-term expectations."
Fed officials meet again on March 18 to decide the direction of interest rates. While trading in Federal funds futures show almost no expectation that the central bank will reduce the benchmark interest rate at its next meeting, expectations for a cut by June or August are increasing.
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