JULY 2008 W4 ALERT
Beige Book Raises Red Flag
Fed’s Key Tool for Keeping Finger on Economic Pulse Warns of Signs of Inflation
<Reuters><July 23, 2008>The latest version of the Federal Reserve Board’s survey of economic activity, commonly referred to as the “Beige Book” due to the color of its cover, was released today and according to a report by Reuters, there were some ominous overtones of inflationary pressures. The book also noted that economic activity slowed in mid-July.
According to the Fed, “All reporting districts characterized overall price pressures as elevated or increasing.”
The report, which covered the period ending July 14, was said to be highly influenced by energy price increases as well as food, chemicals and metal price increases.
(Photo Credit: Reuters)