Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Federal Reserve: Economy growing, prices rising

By Annalyn Censky, staff reporter


NEW YORK (CNNMoney) -- Businesses are passing on surging costs to consumers. Hiring is modest. Wages are barely rising. The housing market is still struggling.

But the economy is expanding at a"modest to moderate pace", the Federal Reserve said.

That's the picture from the Fed's Beige Book report released Wednesday.

Retailers and manufacturers across all 12 of the Federal Reserve's districts said they're seeing higher input costs. That's no surprise given surging prices on everything from oil to food lately.

But while they told the Fed they're already passing on some of those costs to customers, homebuilders -- especially in the Cleveland and Atlanta districts -- are not, most likely due to the troubled housing market.

Both commercial and residential construction continues to be one of the slower segments of the economy, while manufacturers, retailers and financial firms reported slight growth.

Meanwhile, it's still tough to get credit, and in some regions, banks are actually tightening their standards.

The Fed reported little evidence of wages increasing in most of its districts.

The report echoes recent comments from Fed Chairman Ben Bernanke, who acknowledges rising prices are impacting the average American, but not yet at a level that will derail the recovery.

The Beige Book summarizes economic conditions in the central bank's 12 districts across the nation, and is released eight times a year. To top of page

Index Last Change % Change
Dow 18,400.88 -53.42 -0.29%
Nasdaq 5,213.22 -9.77 -0.19%
S&P 500 2,170.95 -5.17 -0.24%
Treasuries 1.57 -0.00 -0.13%
Data as of 12:30am ET
Company Price Change % Change
Bank of America Corp... 16.14 0.02 0.16%
EMC Corp 28.99 0.00 0.00%
Chesapeake Energy Co... 6.35 -0.16 -2.46%
General Electric Co 31.24 -0.13 -0.41%
Freeport-McMoRan Inc... 10.29 -0.27 -2.56%
Data as of Aug 31
Sponsors

Sections

Martin Shkreli, the reviled drug company CEO who faces federal criminal charges, nearly doubled his $3 million investment in KaloBios. More

Brazil's economy contracted 3.8% in the second quarter. The economic news came hours before Brazil's senate impeached President Dilma Rousseff. More

Instagram introduced a zoom functionality on Wednesday to iOS users. It'll roll out to Android users in the coming weeks. More

The country's most expensive housing markets have appreciated at a much faster clip than homes in the least expensive markets, according to Trulia. More