The latest Beige Book report from the Fed
- A majority of districts reported that employment rose but a growing number reported a drop in employment levels
- Two districts reported a decline in activity and two others reported no change
- Wages increased modestly but generally remained weak
- Almost all districts saw price increases compared to the last report
- Pries for construction materials, steel products and shipping services rose further
- Several districts noted improved ability to raise final selling prices
- Based on info collected before Jan 4
There isn't much to takeaway here. We know the pandemic is weighing at the moment but the market is concerned about further out. Clearly there is some inflation building but the Fed thinks it's transitory.
