Fed's Beige Book Shows Housing And Consumer Demand Are Still Bright Spots As Fiscal Cliff Draws Nearer

Wednesday, November 28, 2012 22:15
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Fed's Beige Book Shows Housing And Consumer Demand Are Still Bright Spots As Fiscal Cliff Draws Nearer

Tags: Economic Outlook | Federal Reserve | U.S. economy

The Fed’s Beige Book report said consumer demand and housing offset a slowdown in manufacturing and the drag on the economy resulting from Superstorm Sandy.

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Multiple districts expressed concern about the budget and the fiscal cliff scenario. The Beige Book offers anecdotal evidence on economic growth two weeks before its Federal Open Market Committee (FOMC) meets.
 
The next FOMC meeting is December 11 and 12.
 
Analysts say the Fed is trying to say through the Beige Book that economic growth is ongoing but is not occurring at a fast enough pace.
 
Even if the economy goes over the fiscal cliff, analysts say that the Beige Book is confirming that housing and consumer demand are still bright spots.
 
Widespread disruptions caused by the storm weakened economic conditions in the areas affected including New York, New Jersey, and the Philadelphia area.
 
Fed chief Ben Bernanke said last week that a plan for resolving the nation’s long-term budgetary issues without harming the recovery should make 2013 a very good year for the economy.

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