Economic activity in the United States has seen a minimal increase since early January, as stated in the Federal Reserve's Beige Book. This book is a collection of firsthand data on economic situations across the twelve Federal Reserve districts.
The Beige Book, released on Wednesday, indicates that eight districts experienced slight to moderate growth in activity, three districts saw no change, and a slight decline was identified in one district.
Consumer expenditure, specifically on retail goods, has subtly decreased in recent weeks. Numerous reports emphasized an increase in price consciousness among consumers, indicating that households continue to choices towards more cost-effective options and directing their spending away from non-essential goods.
Moreover, employment has grown at a slight to moderate rate in majority of the districts. Businesses found it less challenging to fill vacancies and locate skilled applicants. Wages also witnessed increased growth across districts, even though several reports suggested a slower growth rate.
In regards to inflation, the Fed mentioned that price pressures persisted during the reported period, but a few districts reported some level of inflation moderation. Although there were mentions of increases in freight costs and several insurance categories, the Beige Book also reported that businesses found it more difficult to transfer increased costs to their customers.
The Beige Book is traditionally released two weeks before the Fed's subsequent monetary policy meeting, which is next scheduled for March 19-20. Currently, the CME Group's FedWatch Tool indicates a 95.0 percent probability that the Fed will maintain the interest rates at the March meeting.
