Modest, moderate, flat, slowed or grew marginally. Those are the key terms in the latest report on the U.S. economy issued by the Federal Reserve, putting some doubt on the central bank's hope to boost interest rates soon.
Recent comments by Fed officials have stressed the likelihood that the economic recovery is strengthening enough so the Fed's stimulus program has been successful, and key lending rates can be increased slightly.
The regular surveys by the Fed, compiled and published in what has become known as the Beige Book, are like taking a person's temperature, blood pressure and heart rate to determine health status.
Janet Yellen, chair of the Federal Reserve Board of Governors, maintains that the agency's action depends on whether data can support a change. Some observers have claimed that the Fed has been signaling a slight boost in the near future. But that near future has been a long time in coming.
At its last meeting, the Fed's Open Market Committee (FOMC), which implements decisions to raise or ease interest rates, said an increase would be "appropriate" if conditions improve. That was taken as a hint that such a boost was being considered. However, that's a big If.
The statement is true in general, but under current conditions it does not apply, especially considering world conditions. European countries are still struggling, and Brazil has just reported a 5.4 percent drop in its economy.
As it is, U.S. economic growth has been barely rising. and nearly half of American families said they have trouble meeting emergency expenses of $400 or more, according a separate Fed report issued two weeks ago.
Moreover, cautionary reports have also come from such economic titans as the International Monetary Fund (IMF), the European Central Bank, and the World Bank warning of problems in scattered countries worldwide.
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