Fed Beige Book: Overall economic activity saw increase early 2023

Reuters reported on the Federal Reserve's Beige Book and noted that the report said that the US economic activity increased slightly from January through late February and price increases remained widespread, but businesses reported a moderation in inflation that they expect to continue this year.

• This report was prepared at the federal reserve bank of new york based on information collected on or before February 27, 2023. 
• Overall economic activity increased slightly in early 2023.
• Inflationary pressures remained widespread, though price increases moderated in many districts.
• Amid heightened uncertainty, contacts did not expect economic conditions to improve much in the months ahead.
• Six districts reported little or no change in economic activity since the last report, while six indicated economic activity expanded at a modest pace.
• On balance, loan demand declined, credit standards tightened, and delinquency rates edged up.

US Dollar update

The US dollar was steady near 105.70 as per the DXY index following the release but it was down from three-month highs reached earlier on Wednesday after Federal Reserve Chairman Jerome Powell offered no major surprises on his second day of testimony before Congress. eyes are now on the US Nonfarm Payrolls at the end of the week.