US economy still stuck as inflation heats up: Beige Book

0 Comments | AFP, September, 2008

WASHINGTON (AFP) — The US economy is sputtering amid weak housing, difficult credit and "retrenchment" in consumer spending, while inflation pressures are high, the Federal Reserve said in its Beige Book report Wednesday.

The report, to be used by its policymakers for their September 16 meeting on interest rates, indicated little improvement from the sluggish pace of activity since July.

Data from the 12 regional Fed banks "indicate that the pace of economic activity has been slow in most districts," the Beige Book said.

"Many described business conditions as 'weak,' 'soft,' or 'subdued,'" the report said.

Some regions showed "weakening," with others seeing modest improvement and others "stabilization," the report said.

The report highlighted...