The Fed drew attention to the increase in economic activities in the Beige Book
The Fed published the March issue of the “Beige Book” report, which includes assessments of the current situation in the American economy.
The report, which was prepared with analyzes from the bank’s 12 branches, evaluated that “General economic activity increased slightly in early 2023”.
In the report, which stated that supply chain disruptions continue to decrease, it was noted that consumer expenditures generally followed a horizontal course.
Economic conditions are not expected to improve much in the coming months.
While emphasizing that high inflation and high interest rates continue to reduce the discretionary purchasing power of consumers in some regions, some concerns were expressed about rising credit card debt, the report said.
It was noted in the report that travel and tourism activities remained quite strong in most regions, while manufacturing activity stabilized after the contraction period.
In the report, it was stated that loan demand has decreased, credit standards have tightened and default rates have risen sharply.
In the Fed’s report, it was stated that economic conditions are not expected to improve much in the coming months amid heightened uncertainty.
Labor market remains strong
In the report, which stated that labor market conditions remained strong, it was stated that employment continued to increase at a moderate to moderate rate in most regions, although some companies stopped hiring and went to layoffs.
In the report, it was noted that wages are increasing at a moderate pace overall and that wage increases are expected to become more moderate next year.
Price increases are expected to continue to moderate throughout the year
In the report, which also touched on price increases, “Inflationary pressures continued to be widespread, although price increases slowed in many regions.” expression was used.
In the report, it was stated that input costs such as energy and raw materials increased even more in some regions, but there was some relaxation in freight and transportation costs.
Pointing out that house prices and rents remain high, the report noted that price increases are expected to continue to moderate throughout the year.