Yahoo Finance reporter Jen Schonberger breaks down the latest data to come out of the Fed's Beige Book.
Video Transcript
DAVE BRIGGS: Thank you. Let's get you up to speed now on some key economic data out today. The Beige Book reflects current economic conditions across the 12 Federal Reserve districts. And Jen Schonberger here to
break that all down. Jen, good to see you. What are we learning?
JENNIFER SCHONBERGER: Good to see you as well. Increases in prices remained high, with significant increases in those so-called input costs used to make products, according to anecdotal evidence on inflation and the
economy across the Federal Reserve's 12 bank districts. Now, taking a look overall at that inflation picture, some context noted solid pricing power over the past six weeks, while others said passing on costs was becoming difficult
as customers started pushing back, though several districts noted some easing of pricing and the expectation looking ahead is for prices to moderate.
Now, taking a look at the job market is that also feeds into inflation as to how high prices consumers are willing to swallow and able to swallow-- overall, seeing some signs of cooling, but the job market remaining strong overall. Several
districts reporting a cooling in demand for workers, while some noted that businesses were hesitant to add to payrolls because of concerns of a forthcoming economic downturn.
Now, there were also scattered mentions of hiring freezes, half of the districts also noted some easing of hiring and/or retention difficulties. Though as I mentioned, overall, the job market remaining strong, competition for workers has
led some companies to try to poach from competitors or have to offer a higher pay in order to get those workers.
Wage pressures remain widespread overall and contacts expect wage growth to continue as higher pay remains essential to retain those workers. Now, overall, the economy expanded modestly on net since September. However, conditions
varied across districts. Four districts noted flat activity, two noted declines with slowing or weak demand attributed to inflation, higher interest rates, and supply chain issues.
Consumer spending has cooled with consumers pulling back on that discretionary spending. And outlooks grew more pessimistic amid growing concerns of weakening demand. So, Dave, bottom line here-- the economy holding in
relatively strong position with inflation remaining in issue, though there are signs of cooling. And businesses do expect a slowdown. Fed officials will take this information into account at their policy meeting in a few weeks where they are
widely expected to raise their benchmark interest rates by 75 basis points for the fourth time in a row. Back to you.
