Fed Beige Book Shows Economy Grew Modestly

The Fed's Beige Book report highlights economic activity across districts, noting slowdowns in Boston and Chicago, and flat activity in New York. Consumer spending remains weak, with lower car sales and retail issues. Despite this, other data suggests a consumer rebound since April. The tight labor market affects wage growth, with businesses struggling to find workers. Some firms increase wages, while others use benefits and automation to retain staff. Housing prices rise due to low inventory, but the overall business tone is positive, though optimism is waning in some areas.

Which districts reported a slowdown or flat economic activity according to the Fed's Beige Book?

• Boston, Chicago, and New York

• Los Angeles, San Francisco, and Miami

• Dallas, Houston, and Atlanta

• Seattle, Denver, and Phoenix

What was a significant factor contributing to weak consumer spending in many districts?

• Lower car sales and retail issues

• Rising stock market prices

• High employment rates

• Increased government spending

How are some businesses responding to the tight labor market?

• By reducing employee benefits

• By increasing automation and offering retraining

• By cutting wages

• By hiring more temporary workers

What strategy did a truck driver firm in Cleveland use to retain workers?

• Providing free transportation

• Increasing vacation days

• Boosting wages by almost 8%

• Offering flexible work hours

What is causing a rise in housing prices according to the report?

• High inventory and low demand

• Low inventory and high demand

• Low demand and low inventory

• High demand and high inventory