“Mostly positive”—those are the words that describe the health and outlook of the US economy, according to the Fed’s latest Beige Book.
The report says the US economy maintained a steady growth rate between late August and early October while a tight labor market is starting to push wages up, Bloomberg reports. Yet despite a tight labor market, inflation is still shy of the Fed’s 2% target.
The report also notes commercial real estate contacts in several districts are concerned about economic uncertainties surrounding the outcome of the US presidential election. Looking forward, investors only see a 17% chance the Fed will raise interest rates in November, yet they forecast more than a 60% chance it will hike rates during the Dec. 13-14 meeting. [Bloomberg]
