Fed Says Economic Optimism Fading In Much Of U.S.
Across the nation, labor markets remain tight
The description: Eight of 12 Federal Reserve districts reported modest to moderate growth in December and early January, with St. Louis and Kansas City reporting flat or slight growth and St. Louis and Dallas reporting a slower pace of growth, according to the Fed’s Beige Book report released Wednesday.
What happened: “Many” districts reported that contacts “had become less optimistic” in response to a litany of woes: increased financial-market volatility, rising short-term interest rates, falling energy prices and elevated trade and political uncertainty, the report said. On prices, “most” districts reported firms were seeing rising input costs, but said firms were “mixed” on whether they could pass these higher costs to customers. High tariffs were seen as one factor in increased expenses, along with higher prices for materials and freight.
Labor markets remained tight. Wages grew across the country and skill levels.
Please select this link to read the complete article from MarketWatch.