The Federal Reserve released its Beige Book report on the nation’s economic health on Wednesday, stating that the US economy remained “generally weak” as regional banks across the country reported contractions.
The survey found that the five boroughs represented by New York, St. Louis, Minneapolis, Richmond and Chicago saw contractions in business and economic activity, while growth occurred in the five boroughs represented by Atlanta, Dallas, Kansas City, San Francis and Boston. according to to the Federal Reserve. Despite the fact that nine of the twelve districts reported a slowdown in inflationary pressure, prices are expected to remain “very high” at least until the end of the year, with necessities such as food, rent and utilities among the most affected.
“Most regional banks are watching their respective economies on the cusp as the brief and anemic growth in the third quarter gives way to outright declines,” EJ Antoni, Regional Economics Research Fellow at The Heritage Data Analytics Center Foundation. he told the Daily Caller News Foundation. “About half of the regions are already in contraction territory. There are already widespread declines in new orders. [for businesses]a forward-looking indicator. (RELATED: Famous Investor Who Predicted 2008 Market Crash Warns of “Tragedy”)
In August, the Federal Reserve Banks of New York, dallas, Philadelphia Y richmond each reported that new manufacturing orders were down, which Antoni warned it is a sign of weakening economic conditions. These results are consistent with results from the Global Purchasing Managers’ Index (PMI), which found that the global economy was contracting as new orders declined, with the US contracting at the rate faster, according to to a Tuesday report from S&P Global and JP Morgan Chase.
Even where contractions have not yet started, growth is slowing markedly, Antoni told the DCNF.
“As economic activity everywhere slows, the places that already had the slowest growth are just the first to enter contraction territory,” he said.
Bottom line: “Prospects for future economic growth remained generally weak, with contacts signaling expectations of a further decline in demand over the next six to twelve months.”
There is no recession, but one is coming
—Edward Harrison (@edwardnh) September 7, 2022
Businessmen and other experts surveyed in Philadelphia, Chicago, Dallas and Boston expressed concern about a recession, according to the Federal Reserve. Nearly three-quarters of private economists believe the Federal Reserve will induce a recession if it manages to bring down inflation in the next two years, according to an Aug. 1 report. 22 report by the National Association of Business Economics.
Federal Reserve Chairman Jerome Powell went on to Registration in an August speech on February 26 that “some pain” for businesses and households was an acceptable consequence for the Fed to control inflation.
The Federal Reserve is expected to raise interest rates at its next meeting as part of ongoing efforts to combat inflation, but whether it will do so by 0.5% or 0.75% is not known. according to to Bloomberg.
The Federal Reserve Board of Governors did not immediately respond to a request for comment from the Daily Caller News Foundation.
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