By MICHAEL M. GRYNBAUM
Americans are cutting back on everything from cars to food to name-brand products, the Federal Reserve said on Wednesday, in another sign that the economy could slow significantly as money from the federal stimulus checks dries up.
The Fed’s beige book report for June and July, considered a snapshot of the economy, highlighted fears that economic growth will stagnate as Americans cut back in the face of a weak job market and higher gasoline prices. Consumer spending accounts for more than two-thirds of the nation’s total growth.
Prices are also rising, particularly for fuel and food, even as wages stay steady. And while some businesses said they had not raised prices for fear of losing customers, there were signs that inflation was bubbling up.
The findings reinforced expectations that Fed policy makers will hold interest rates… continua.
Estratto da THE NEW YORK TIMES