Economy Remains Sluggish, Fed Says

Washington Post (06/12/08) P. D1; Irwin, Neil
The Federal Reserve's most recent Beige Book report shows "softer, weaker or lower" economic activity in three regions and "slower, sluggish or modest" growth in four regions in late April and May, with the other five regions reporting that their economies have held steady since the previous report. Experts say consumers and businesses are being hit hard by rising fuel and energy prices and a weaker job market, with gas prices ranking as Federal Reserve Chairman Ben Bernanke's top concern. With regard to housing, the beige book indicates "exceptional" weakness on the West Coast and general weakness nationwide. The report will be used by the central bank to determine how to treat interest rates at its June 24-25 meeting, but experts believe concerns about inflation will cause policymakers to leave interest rates alone.