WASHINGTON—The Federal Reserve Beige Book, released this week, showed increased economic activity in October and through mid-November in all 12 Fed districts.
The outlook for holiday sales was also generally optimistic.
"The Fed's latest report is in line with other recent communication, which offers a relatively positive outlook on the status of the economy," said NAFCU Vice President of Research and Chief Economist Curt Long in his analysis. "While growth is still falling short of historic norms, it remains steady. Low inflation and wage growth seem to have reassured the Fed that the economy is not in danger of overheating, and that no glaring signs of danger are on the horizon."
Outgoing Federal Reserve Chair Janet Yellen, testifying before the Joint Economic Committee of Congress, also gave a positive assessment of economic conditions, Long said.
Of note from the Fed Beige Book:
- Most districts reported little growth in sales or construction of residential real estate, but nonresidential activity remained consistent with past reports and saw slight growth. Loan demand was also steady to strong throughout all the districts.
- Districts classified employment growth as "modest to moderate," with many of them describing tight labor markets.
- The districts reported that manufacturing activity expanded in October and this month.
- Price pressures strengthened since the Fed's last report issued in October.