Reply To: Federal Reserve Again Raises Rates Again 75 Basis Points as Expected


Beige Book showed that economic activity expanded at a modest pace, while the government ran a deficit of about $89 bln in June.

Key excerpts from the Beige Book included that outlooks were mostly negative, and uncertainty surged, with contacts voicing concern about slowing future demand and increased risk of a recession stemming from high prices, supply-side constraints, weakening consumer sentiment, and rising interest rates.

Further, substantial price increases were reported across all Districts, at all stages of consumption, though three quarters noted moderation in prices for construction inputs such as lumber and steel. Increases in food, commodities, and energy (particularly fuel) costs remained significant, though there were several reports that price inflation for these categories had slowed compared with recent months but remained historically elevated.