WASHINGTON—Two-thirds of the Federal Reserve's districts reported "modest to moderate" economic growth throughout the U.S., according to the Fed's latest Beige
Book report.
The report highlighted increased financial market volatility resulting from rising short-term interest rates and political uncertainty.
"This version of the Beige Book was a bit downcast," said NAFCU Chief Economist and Vice President of Research Curt Long. "While markets may be pleased that it provides more motivation for Fed officials to slow the pace of rate hikes, it may also fuel the fears of those anticipating a broad slowdown in the economy this year. As long as businesses continue hiring, the expansion should continue. But if rising uncertainty among employers begins to show up in the hiring figures, that would certainly stoke recessionary concerns."
Also of Note
Also of note in this report, according to Long:
- Employment increased in most of the country, with a "plurality of districts reporting modest growth"
- Lending volumes grew modestly, though a few districts noted that "growth had slowed"
- The majority of districts reported "modest to moderate" increases in prices
- Wages increased across skill levels, and numerous districts highlighted "rising entry-level wages as firms sought to attract and retain workers and as new minimum wage laws came into effect"
- Rising home prices were noted, but overall commercial and industrial space "either increased or were flat"