Question

In: Economics

The Federal Reserve released its regular "Beige Book." the January 17th release . Reserve system banks...

The Federal Reserve released its regular "Beige Book." the January 17th release . Reserve system banks along with the Federal Reserve Bank of NY deliver a summary and slightly longer details of economic activity in our region in this report. Read the NY Fed's section and write a memo summarizing the details of the report

Solutions

Expert Solution

Overall Economic Activity
Reports from the 12 Federal Reserve Districts indicated that the economy continued to expand from late November through the end of the year, with 11 Districts reporting modest to moderate gains and Dallas recording a robust increase. The outlook for 2018 remains optimistic for a majority of contacts across the country. Most Districts reported that non-auto retail sales expanded since the last report and that auto sales were mixed. Some retailers highlighted that holiday sales were higher than expected. Residential real estate activity remained constrained across the country. Most Districts reported little growth in home sales due to limited housing inventory. Nonresidential activity continued to experience slight growth. Most manufacturers reported modest growth in overall business conditions. Reports indicated that some manufacturers increased capital expenditures over the reporting period. Most reporting Districts noted continued growth in transportation activity. Loan volumes in many Districts were steady. Among reporting Districts, agricultural conditions were mixed and energy contacts described a slight uptick in activity.

Employment and Wages
On balance, employment continued to grow at a modest pace since the previous report. Most Districts cited on-going labor market tightness and challenges finding qualified workers across skills and sectors, which, in some instances, was described as constraining growth. Several Districts noted elevated demand for manufacturing and construction labor. Most Districts said that wages increased at a modest pace. A few Districts observed that firms were raising wages in a broader range of industries and positions since the previous report. Some Districts reported that firms expect wages to increase in the months ahead.

Prices
Most Districts reported modest to moderate price growth since the last report; exceptions were Chicago, which noted that prices increased only slightly while San Francisco noted price inflation was down slightly. Reports of pricing pressures were mixed across the country although several Districts noted increases in manufacturing, construction, or transportation input costs. Firms in some Districts noted an ability to increase selling prices. Retailers in some Districts reported modest price increases and there were reports of rising home prices across most of the country. Agriculture and energy commodity prices were mixed.


Related Solutions

Beige Book - April 18, 2018 The Federal Reserve released its regular "Beige Book." the April...
Beige Book - April 18, 2018 The Federal Reserve released its regular "Beige Book." the April 18th release. Read and write a one page summarizing the details of the report. What’s happening in employment and wages, price and consumer spending, Manufacturing and Distribution, service and finance and banking in March. Federal Reserve Bank of New York Overall Economic Activity Economic activity continued to expand at a modest to moderate pace across the 12 Federal Reserve Districts in March and early...
The Federal Reserve System consists of 12 regional Federal Reserve Banks. Each bank is sponsored and...
The Federal Reserve System consists of 12 regional Federal Reserve Banks. Each bank is sponsored and wholly owned by private commercial banks, who own all of the Bank's stock and receive stock dividends. Nonetheless, Mishkin describes the Federal Reserve Banks as "quasi-public" institutions. (a) Explain what aspects of the Federal Reserve System allow Mishkin to consider the Federal Reserve Banks semi-public entities.
Compare the structure and independence of the European System of Central Banks and the Federal Reserve...
Compare the structure and independence of the European System of Central Banks and the Federal Reserve System.
Explain the similarities and differences between the European System of Central Banks and the Federal Reserve...
Explain the similarities and differences between the European System of Central Banks and the Federal Reserve System.
As the bankers’ bank, the Federal Reserve Banks operate the payments system in the United States?...
As the bankers’ bank, the Federal Reserve Banks operate the payments system in the United States? What are the different components of the payments system that they operate? Briefly describe.
Describe the federal reserve system and its major functions
Describe the federal reserve system and its major functions
Describe the functions performed by Federal Reserve Banks?
Describe the functions performed by Federal Reserve Banks?
Research the following question using the Federal Reserve's Beige Book Summary for the latest quarter: is...
Research the following question using the Federal Reserve's Beige Book Summary for the latest quarter: is our economy in the recession or growth/expansion phase of the business cycle?
the federal reserve system has suggested that some very large banks in the US are too...
the federal reserve system has suggested that some very large banks in the US are too big to fail. If the feds adopt such a policy stance, what problem will it probably face as it seeks to cope with troubled banks?
vv Unit 7 Assignment: Money, Banks, and the Federal Reserve System In this Assignment, you will...
vv Unit 7 Assignment: Money, Banks, and the Federal Reserve System In this Assignment, you will describe how money, banks, the Federal Reserve System, and the effects on money growth based on the rate of inflation.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT