The Beige Book of the Federal Reserve revealed on Wednesday that economic growth in Federal Reserve districts slowed slightly at a moderate pace from early July to August, according to Reuters.
“All districts continued to report an increase in employment overall, although the characterization of the rate of job creation ranged from mild to strong.”
“Inflation was reported to have remained stable at a high rate, with half of the districts characterizing the rate of price increase as strong, while half described it as moderate.”
“The demand for workers continued to grow, but all districts noted a severe labor shortage that limited employment and, in many cases, hampered business activity.”
“Some districts noted that return-to-work schedules were delayed due to the increase in the Delta variant.”
“The slowdown in economic activity was largely due to a decline in dining out, travel and tourism, reflecting safety concerns due to the increase in the delta variant.”
“Several districts reported accelerating wages and most characterized wage growth as strong.”
“Several districts noted particularly aggressive wage increases among lower-paid workers.”
“Employers were reported to be using raises, bonuses, training and flexible work arrangements more frequently to attract and retain workers.”
“With the general scarcity of resources, the pressures on input prices continued to be generalized.”
“Other sectors of the economy where growth slowed or activity declined were those constrained by supply disruptions and labor shortages, as opposed to declining demand.”
“Looking ahead, businesses in most districts were optimistic about the near-term outlook.”
“Some districts reported that businesses find it easier to pass on more cost increases through higher prices.”
“Several districts indicated that companies anticipate significant increases in their sales prices in the coming months.”
The US Dollar Index largely ignored this post and was last seen up 0.12% on the day to 92.64.