Beige Book: US economy still shows modest growth

The US economy continued to show “modest” activity growth across the board until early October. But the picture was not the same everywhere. In some parts of the United States, there was a clear slowdown in growth, the Federal Reserve reports in its so-called Beige Book.

According to the dome of central banks, the outlook for the economy has become bleak amid growing concerns about declining demand. In addition, the prices of many products continued to rise sharply, although inflation in some regions seemed to weaken slightly.

Many economists have long been aware that the US will not be in a recession for too long. The new study on the state of affairs in the US economy was compiled on the basis of surveys by the regional central banks. The data was collected in September and part of October.

Investors always keep a close eye on the Beige Book because it may give them a clearer picture of the future of interest rate policy. The Fed has already raised interest rates four times this year to combat high inflation.

In the past three interest rate decisions, the interest rate was even raised by substantial steps of 0.75 percentage points. Earlier this month, it was revealed that the US labor market is still very strong, which gives the Fed more room to continue to raise interest rates firmly in the coming period.