July 30, 2009 - 5:57am
According to the Federal Reserve, the pace of the recession has slowed or stabilized in most areas of the United States. Beige Book survey of economic conditions through July 20 showed that labor markets across the country were "extremely soft," with little upward pressure on wages. Employers reported different methods of cutting pay in addition to, or instead of, freezing or lowering wages.
Stocks slipped on the report's suggestion that the jobs picture may be gloomy for a while. In order to counter the worst financial crisis since the Great Depression of the 1930s, the Fed has cut benchmark interest rates to near zero and pumped hundreds of billions of dollars into the economy. Fed officials expect growth to return in the second half of the year, but warning the recovery will be slow and high unemployment will persist for a while. In addition, the Fed has promised to keep benchmark rates exceptionally low for an extended period and to keep its supportive policies in place to support the fragile turnaround.
Furthermore, residential real estate markets were weak in most districts although many reported evidence things were getting better. The outlook for commercial real estate, which Fed officials have cited as a potential looming problem, was mixed, with some Fed contacts forecasting further deterioration into late 2010. Commercial real estate markets weakened in two thirds of Fed districts and remained slow in others, the bank said.
Stocks slipped on the report's suggestion that the jobs picture may be gloomy for a while. In order to counter the worst financial crisis since the Great Depression of the 1930s, the Fed has cut benchmark interest rates to near zero and pumped hundreds of billions of dollars into the economy. Fed officials expect growth to return in the second half of the year, but warning the recovery will be slow and high unemployment will persist for a while. In addition, the Fed has promised to keep benchmark rates exceptionally low for an extended period and to keep its supportive policies in place to support the fragile turnaround.
Furthermore, residential real estate markets were weak in most districts although many reported evidence things were getting better. The outlook for commercial real estate, which Fed officials have cited as a potential looming problem, was mixed, with some Fed contacts forecasting further deterioration into late 2010. Commercial real estate markets weakened in two thirds of Fed districts and remained slow in others, the bank said.