Ten of twelve Federal Reserve Districts reported slight to moderate economic expansion, up from eight in April, amid steady rates.
The Federal Reserve’s latest Beige Book indicated economic activity grew at a slight to moderate pace in ten of twelve Districts, an improvement from April’s eight. Two Districts reported little or no change, while none saw declines, contrasting with prior modest contractions in some regions.
The report follows the FOMC’s decision to hold the federal funds rate at 3.50%-3.75%, though dissent emerged over the statement’s dovish tone. Markets are pricing in 20 basis points of rate hikes by year-end, reflecting concerns over inflation and stronger economic data.
The Beige Book, released today, provides anecdotal evidence of regional economic trends, with no immediate market reaction reported.