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Wednesday, July 23, 2008

Fed's Beige Book : STAGFLATION!

Fed's Beige Book : STAGFLATION!
WASHINGTON (MarketWatch) -- The U.S. economy has slowed over the past month while price pressures intensified, according to the latest report of economic conditions compiled by the Federal Reserve released Wednesday. Consumer spending was sluggish despite the tax rebates, according to the survey.
Bottom line...weaker car sales, housing slump continues....
As market watch says "In one of the worst reports on prices in memory..."
Wonder why they did not use "worst report since the Great Depression" since that seems to be popular these days.
Overall wages were soft, while workers in some areas were demanding wage adjustments to supplement cost of living increases
Good luck trying to get an increase in this environment. Slower growth is keeping inflation numbers (As per Fed) from getting out of control.

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