The Federal Reserve (Fed) of the United States announced yesterday the release of its Beige Book report, which stated that the overall economic activity in the country is showing growth. However, this growth has indirectly led to a change in consumer habits, forcing people to alter their consumption patterns. The Beige Book report provides a pessimistic summary of the overall economic activity in the United States.
In order to curb the persistent inflation, the Fed decided in early May to maintain the federal benchmark interest rate at a range of 5.25% to 5.5%, achieving a six-month freeze on interest rates. However, the long-term high interest rate policy not only puts pressure on financial institutions, but also indirectly changes the consumption habits of the public.
In this context, the Federal Reserve of the United States released the Beige Book yesterday, stating that from early April to mid-May, the economic activity of the nation continued to expand, with most regions experiencing “modest or moderate” growth. However, this expansion of the economy has not only caused an increase in commodity prices, but also indirectly forced people to change their consumption habits.
Additionally, the Beige Book provides a pessimistic description summarizing the overall economic activity in the United States.
The Beige Book is a report on the economic conditions in the United States released annually by the Federal Reserve Board. It is published eight times a year and is required to be released before the Federal Open Market Committee meetings. The Beige Book includes summaries of regional economic conditions from the 12 Federal Reserve Banks and the national economic conditions of the United States.
Federal Reserve officials: The fourth quarter may be a time for interest rate cuts by the Fed.
On the other hand, Raphael Bostic, President of the Federal Reserve Bank of Atlanta, stated at a conference in Atlanta yesterday that there is still a long way to go in order to curb the significant price increases in recent years.
However, despite the current high level of market inflation, Bostic believes that indicators mainly focused on inflation slowing down may prompt the Fed to consider interest rate cuts in the fourth quarter of this year.
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