Economic Growth ‘Moderate’ in New Fed Report, But Some Fed Banks Worried Over a Recession

 WASHINGTON—Economic growth was moderate during April, according to the latest Beige Book from the Federal Reserve, but three of the Fed’s district banks expressed concerns about an upcoming recession.

The Beige Book found retailers reported some softening as consumers faced higher prices, while residential real estate sources reported weakness as buyers faced high prices and rising interest rates. In addition, employers cited labor market difficulties as their greatest challenge, followed by supply chain disruptions.

“The latest Beige Book reflects softening conditions, but consumers continue to buoy the economy for the time being,” said NAFCU Chief Economist and Vice President of Research Curt Long.

Additional Findings

Long noted other insights from the latest Beige Book:

• Eight Districts reported that expectations of future growth among their contacts had diminished
• Worker shortages continued to force many firms to operate below capacity – and in response, firms continued to deploy automation, offer greater job flexibility, and raise wages
• Most Districts noted that their contacts had reported strong or robust price increases – especially for input prices.

The latest Beige Book report was based on information collected on or before May 23.