HiFX: Foreign Exchange Specialists

• Headlines

April 16, 2008

The release of the Fed Beige Book today highlighted that economic conditions were weakening across the nation while price pressures mainly from food and energy were increasing.  U.S. businesses reported feeling the squeeze from higher input costs and plan to pass the increase of costs through to the consumers in an attempt to recoup their losses.  The Fed also explained that despite a generally weaker labor market there are concerns of wage pressures and a continuing shortage of skilled workers.  Despite the fairly gloomy report presented by the Fed’s Beige Book market reaction was largely muted.