Fed’s Beige Book report noted that the national economy expanded at a “moderate pace”, “somewhat faster” than the prior reporting period. Several Districts cited the “positive effects” of increased vaccination and relaxed social distancing measures. Overall, “expectations changed little, with contacts optimistic that economic growth will remain solid.”
Two-third of Districts reported “modest employment growth” while wage growth was “moderate”. Businesses expected “labor demand will remain strong, but supply constrained, in the months ahead”. Overall price pressures “increased further”. Businesses anticipated facing “cost increase and charging higher prices in coming months.”
