Federal Reserve To Continue QE and Use Powers Forcefully. Aggressively and Proactively

Helmholtz Watson

[b]Beige Book prepared at the Federal Reserve Bank of Chicago based on information collected on or before July 6, 2020.[/b]


Activity increased in almost all districts but remained well-below pre-pandemic levels
Outlooks remained highly uncertain, as contacts grappled with how long the COVID-19 pandemic would continue and the magnitude of its economic implications.
Many contacts who have been retaining workers with help from the PPP said that going forward, the strength of demand would determine whether they can avoid layoffs.
Contacts in nearly every District noted difficulty in bringing back workers because of health and safety concerns, childcare needs, and generous unemployment insurance benefits.
Prices were little changed overall but vehicle prices were higher on low inventories

St Louis: In comparison with our previous report, the outlook among contacts is slightly more pessimistic while also much more uncertain. The pace of recovery appears to have slowed since mid-June
Dallas: Outlooks improved, but the upward trend in new COVID-19 cases has increased uncertainty.
San Francisco: Economic activity in the Twelfth District contracted modestly
Chicago: Economic activity in the Seventh District increased strongly in late May and June, but remained well below its pre-pandemic level. Contacts expected further growth in activity in the coming months, but most did not expect a full recovery until at least the second half of 2021