According to a report, eight times a year, the Federal Reserve publishes a report called the Beige Book. It draws data and surveys from each of the twelve regional Fed banks.
Its use of qualitative and quantitative data enables observant readers and investors to see patterns in economic situations that are difficult to convey visually.
According to the report, the economy has grown little since the end of February. Ten of the twelve districts saw minor economic improvement (compared to eight in the last report), and two districts saw no change. Several districts, however, have noted that Americans are becoming more aware of ‘Bidenflation’ and cutting down on discretionary spending.
For example, although high demand for car loans was seen in certain areas, this indicates dealers’ attempts to unload excess inventory more than a robust economy.
A rule of thumb states that auto dealerships should have sixty days’ worth of inventory on hand. A number greater than 80 is excessive. A few manufacturers have more unsold vehicles than they would like, contributing to the current average of 80.
The Federal Reserve ominously pointed out that the Red Sea terrorism and the demise of Baltimore’s Key Bridge weren’t important causes at this time, but overall, prices rose. The Suez Canal, the quickest maritime route between Europe and Asia, saw a decrease in traffic as a result of Islamic terrorist attacks on ships in the Red Sea. Approximately fifteen percent of the world’s marine commerce goes via the Suez Canal.
As the expense of bringing items to market rises, it becomes harder to pass on the cost increases to customers. This is one of the most concerning aspects expressed by several organizations.
The majority of districts also saw an overabundance in the workforce. This should not be surprising, considering the present levels of illegal migration, according to reports. Several districts have reported an absence of candidates for jobs requiring specialized labor.
If Biden’s Administration were forthright, it would admit that the Beige Book displays dire warnings.
