According to a report by the central bank, the bottom line is that the economy has not been able to grow.
(Photo: dpa)
Washington In the US, according to the Federal Reserve (Fed), the bottom line was that the economy was flat in July and August. Five counties reported mild to moderate growth, while five other counties reported mild to moderate slowdown, the Federal Reserve said in its Beige Book economic report released on Wednesday. The outlook is also likely to remain bleak in general.
According to the report, which is based on business contacts from the regions, demand is likely to weaken in the next six to twelve months. The price level remained high overall, but the rate of inflation slowed down in nine districts.
Most respondents expected the price pressure to continue at least until the end of the year. There has been a moderate relaxation on the labor market in almost all districts.
The job engine in the USA continues to run smoothly, even if economic output has recently shrunk for two quarters in a row. However, the Fed is very concerned about the high inflation rate of 8.5 percent recently. It wants to combat the rapid rise in prices by further increasing the price of money. At the same time, however, it accepts that the economy will suffer as a result.
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US Federal Reserve Chairman Jerome Powell recently said that the tight course is likely to cause “some pain” for households and companies.
The Fed recently raised the key interest rate unusually sharply twice in a row by 75 basis points – to the range of 2.25 to 2.50 percent. She wants to follow up at the meeting on September 21st.
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