Beige Book Uncovers Mostly Unchanged Future Growth Expectations
The Fed's "Beige Book" reveals that expectations for future growth remained mostly unchanged, with two districts experiencing deteriorating outlooks. Contacts expect relief from input cost pressures but anticipate changing prices more frequently than in previous years.
Fed Policymakers Raise Benchmark Overnight Interest Rate
Less than two weeks after two large regional banks failed, Fed policymakers raised the benchmark overnight interest rate by a quarter of a percentage point to the 4.75%-5.00% range. They also signaled the end of the most aggressive policy tightening in 40 years.
Report Shows Declining Lending Volumes and Loan Demand
The report highlighted declining lending volumes and loan demand for households and businesses. Last month's bank failures will reduce the credit supply in the coming months.
Mixed Outlook for Inflation and Labor
The report suggested a mixed outlook for inflation and labor, with freight volumes slowing down and reduced demand for labor in the transportation sector. However, most regions reported steady to increasing demand for nonfinancial services, indicating that services inflation may remain sticky.