The Beige Book report, prepared with analyzes from 12 regional branches of the US Federal Reserve, addressed the effects of labor shortages and high inflation in the country.
The Fed published the “Beige Book” report, which includes evaluations of the current situation in the American economy. The US economy grew at a “moderate to moderate” pace in October and the first half of November, but firms had to contend with rising inflation and labor shortages, according to data from the Fed’s survey. In addition, it was emphasized that it has become difficult to recruit and permanently employ employees in the USA.
In the statements in the Beige Book, it was stated that prices rose at a moderate to strong pace across sectors, and the demand for raw materials increased.
In the book, where it was stated that there was an increase in input costs due to breaks in the supply chain and problems in the labor market, the effect of high inflation on the real sector was also mentioned.
In his statement on November 30, US Federal Reserve Chairman Jerome Powell stated that the risk of high inflation has increased, “At this point, the economy is very strong and inflationary pressures are high, so it would be appropriate to consider completing the reduction in asset purchases, which we announced at the November meeting, maybe a few months ago. I hope to discuss this at our meeting in a few weeks.”