Fed Beige Book Reveals Moderating Trucking Demand
conomic activity in most of the 12 Federal Reserve districts continued to expand at a moderate rate in the period spanning early October through late November, though some districts reported accelerating growth while others reported cooling economic activity, the Federal Reserve said Wednesday in its latest “Beige Book” report.
Since the Fed’s last report, trucking firms in the Cleveland district have reported softening demand, led by a slowdown in the shipment of automobile-related parts. Freight volumes in the district are slightly below last year’s levels, the Fed’s contacts said.
Truckers in the Atlanta district reported a slowdown on weaker retail and building materials sectors. Contacts in that district also said retailers have not been increasing their inventories to customary holiday-season levels.
Meanwhile, in a speech given before the National Italian American Foundation in New York, Federal Reserve Chairman Ben Bernanke said core inflation rates remain are still “uncomfortably high.”
“Over the next year or so, the economy appears likely to expand at a moderate rate, close to or modestly below the economy's long-run sustainable pace,” said the Fed chief. However, “upside risks to inflation are the predominant risks.”
Bernanke added that while the housing and automotive sectors have weakened, economic activity in other sectors has “been expanding at a solid pace.”
The latest Beige Book, based on anecdotal interviews, was prepared by Federal Reserve Bank of Atlanta, based on information collected in the 12 Fed districts from Oct. 2 through Nov. 20.
The Federal Reserve Open Market Committee’s next meeting is scheduled for Jan. 30.
