U.S. Economic Activity Remains Stable Amid Rising Prices, Fed Beige Book Reveals

According to PANews, the Federal Reserve's Beige Book released on Wednesday indicates that U.S. economic activity has remained largely unchanged in recent weeks, with a slight decline in overall consumer spending. Employment levels have been stable, though labor demand is weak, and prices continue to rise, with several regions reporting accelerated input cost growth. Discussions on labor market trends suggest a slight weakening over the past six weeks. The Beige Book notes that 'labor demand is generally weak across regions and industries,' with more employers reducing staff through layoffs and natural attrition, marking a deterioration compared to comments from most regions in September where employment 'changed little.' However, the report also highlights that 'wages have increased in all regions, with growth rates ranging from moderate to average,' contrasting with September when several regions reported no wage growth. Despite these findings, the report is unlikely to deter Federal Reserve policymakers from voting for further interest rate cuts at the upcoming meeting. In recent days, an increasing number of rate setters, including centrists and even hawks, have publicly supported further rate cuts in the short term.