Fed's Beige Book: US firms see progress on labor supply, price pressures

The Federal Reserve's Beige Book notes that economic activity, stating that "the outlook for future economic growth remained generally weak.

The US central bank released its latest summary of feedback from business contacts nationwide as it mulls whether to proceed with a third straight 75-basis-point interest rate hike at its Sept. 20-21 policy meeting or go with a still larger-than-usual 50-basis-point rise in its battle to curb high inflation.

Key notes

• Economic activity was unchanged, on balance, since early july, with five districts reporting slight to modest growth in activity and five others reporting slight to modest softening.
• The outlook for future economic growth remained generally weak, with contacts noting expectations for further softening of demand over the next six to twelve months.
• Price levels remained highly elevated, but nine districts reported some degree of moderation in their rate of increase.
• The outlook for future economic growth remained generally weak, with contacts noting expectations for further softening of demand over the next six to twelve months.  
• Employers noted improved worker retention, on balance.
• Wages grew across all districts, although reports of a slower pace of increase and moderating salary expectations were widespread.