Fed survey showed uneven growth by Magdalena Rosova

In early fall, the U.S. economy experienced uneven growth. More than half of the country's regions expanded a bit but others stagnated. According to a survey provided by the Federal Reserve and released on Wednesday, seven out of the 12 regions had moderate improvements in business activity. Regions Philadelphia, Richmond and Cleveland reported mixed or steady economic activities. Atlanta and Dallas described its economic growth as slow. The economy is not weak but its growth is too slow to impact high unemployment. The unemployment rate in the U.S. is now for more than a year above 9.5 percent. Firms are reluctant to hire new employees. High unemployment is probably the bi! ggest concern of the Fed. It is widely expected that Fed Chairman Ben Bernanke and his colleagues will introduce a new program that should bolster the economy. Their official meeting is planned on Nov. 2-3. The Fed will probably buy Treasury bonds to drive down interest rates on mortgages and other deb. Cheaper credit should encourage Americans to increase their spending, which would boost economy growth and consequently enforce companies to hire new workers. Fed policymakers will discuss the Fed's survey, also called Beige Book, at the November meeting. The survey is based on information that had been collected from the Fed's banks in twelve regions. The survey was held before Oct. 8 and it is more than just broad statistics, it gives useful information about the overall economy. Economist Jennifer Lee said that it was positive to find out that the overall read had not been as depressing as it could had been.

related story (sgx18452): http://www.miamiherald.com/2010/10/21/1883533/fed-survey-poi...

by Magdalena Rosova for Cantell TV (http://cantell.tv)

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