Beige is the new pink.
The U.S. Federal Reserve released its Beige Book, a report on regional economies, which indicated that the economy is growing at a “modest to moderate” pace. The report highlights Philadelphia and Atlanta as two regions that are growing at a faster rate than other areas in the country.
Banking and housing markets also showed improvement across most of the regions while inflation is not yet considered a major concern, with long-term inflation expectations remaining “subdued.”
That said, Chairman Ben Bernanke said that rising fuel costs could push short-term inflation upward.
On the manufacturing front, growth has been “at a steady pace across the nation” with “several districts indicating gains in capital spending, especially in auto-related industries.”
Regarding employment, “The decline in the unemployment rate over the past year has been somewhat more rapid than might have been expected, given that the economy appears to have been growing during that time frame at or below its longer-term trend.”
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