Written by Yassin Ibrahim
Investing.com – The Federal Reserve’s Beige Book indicates that supply chain and labor market bottlenecks, the fallout from the coronavirus and delta-pivoting are delaying the economy’s growth, according to a report released today.
The US economy grew at a modest pace across most of the Fed’s districts, and the pace of growth slowed during this period due to supply chain bottlenecks and uncertainty due to the pandemic, according to the Federal Reserve’s Beige Book, data collected by the Fed from its 12 districts through October 8.
There is no sign of a decline in the price of inputs to the economy. “Most neighborhoods remember a rise in prices, because of the increased demand for goods, and the high demand for raw materials.” The report indicated that companies were able to avoid raising expenses by increasing selling prices.
According to the report: “Many companies have raised selling prices, which indicates a greater possibility of passing the price increases to the consumer, in light of strong demand, with the possibility of moderate prices during the next 12 months.”
And the US labor market continues to suffer, preventing growth and forcing companies to raise wages. The companies indicated that prices should be raised, to attract talent, and increase the wages of current workers, to ensure their survival.
While the economic outlook remained moderately positive, with persistent inflation, and supply chain bottlenecks, hurting sentiment.
“The near-term outlook remains positive, but some neighborhoods are experiencing a state of uncertainty, and a state of cautious optimism over the coming months.”
It rose strongly today due to the decline in the US dollar and the decline in US yields, while recovering some losses today, with the weakness of the dollar.
The price of oil is rising today due to an unexpected decline in US oil inventories. And record 85.72 dollars a barrel.
While today’s currency rises to a new record, despite its collapse during the months of June and July due to Chinas ban on digital currencies. The rally comes on the back of the much-anticipated listing of the first ProShares Bitcoin Strategy ETF (NYSE:) ETF.