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Post by schwartzie on Oct 21, 2021 10:56:16 GMT -5
Fed’s Beige Book Sounds Red Alert on Inflation
JOHN CARNEY20 Oct 2021216 5:33 Businesses are telling Federal Reserve officials that inflationary pressures are pushing up their costs and raising consumer prices, the Federal Reserve said in a report Wednesday. “Most Districts reported significantly elevated prices, fueled by rising demand for goods and raw materials. Reports of input cost increases were widespread across industry sectors, driven by product scarcity resulting from supply chain bottlenecks,” the Fed said in its October Beige Book, an occasional compilation of reports from the 12 regional Federal Reserve banks about what they are hearing from local businesses. Although conveyed with the mild language typical of the Beige Book, Fed watchers regard the tone of the report’s inflation news as a sign that officials are becoming increasingly concerned. “Many firms raised selling prices indicating a greater ability to pass along cost increases to customers amid strong demand,” the Beige Book reports. “Expectations for future price growth varied with some expecting price to remain high or increase further while others expected prices to moderate over the next 12 months.” The supply-chain problems and a shortage of workers are not just pushing up prices. They are also holding back growth, according to the Beige Book. Continued at link
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