Current Beige Book report
QUESTION
Chapter 10 Beige Book assignment
The Beige Book and current consumer spending Go to the Federal Reserve site, www.federalreserve.gov, and select "About the Fed," then "Structure The Federal Reserve System," and then read the page and your Federal Reserve District on the map. Next, return to the Fed home page and select "Monetary Policy," then "Reports," and then "Beige Book." Answer the following questions:
What is the Beige Book?
Locate in the current Beige Book report and compare consumer spending for the entire U.S. economy (in the Summary) with consumer spending in your Federal Reserve District.
What are the economic strengths and weaknesses in both?
What are their expectations for the future?
Locate in the current Beige Book report manufacturing and compare for the entire U.S. economy (in the Summary) with manufacturing in your Federal Reserve District.
What are the economic strengths and weaknesses in both?
What are their expectations for the future?
Based on the above, what is the overall indication for economic growth in the economy? Why?
in the question asks and wants to talk about my Federal Reserve District.
| Subject | Computer Science | Pages | 14 | Style | APA |
|---|
Answer
The Beige book by definition is a compilation record of information collected from each of the twelve Federal Reserve banks on the current conditions across the twelve federal districts (Board of Governors of the Federal Reserve System, 2019). The Beige book offers a contrasting report of Kansas City Federal District against the US economy on consumer spending, manufacturing, their strengths and weaknesses and future expectations.
According to the latest report of the Beige Book, consumer spending in the US has remained positive while some districts approach a steady rate in retail sales marked with a slender increase in tourism activity (Board of Governors of the Federal Reserve System, 2020). Meanwhile, Kansas City, on the same report, has recorded a slow fall in consumer spending with significant slumps noticed in retail, restaurant, tourism and auto sales.
Kansas City District records its economic strengths in manufacturing, transportation, and healthcare while the main weaknesses are found in retail, restaurant, auto and tourism sales (Ziegler, 2018). However, the US economy thrives positively in employment while it suffers in the pricing of goods that have gone up.
The future expectation of consumer spending reflects that employment will increase with restaurants hiring new employees while retail and auto sales will see a moderate increase in the next six months or so. Meanwhile, restaurants and retail sectors may suffer from a decline expected.
Both the US and Kansas City have recorded an increase in manufacturing (Board of Governors of the Federal Reserve System, 2020). Kansas City has shown a growth in manufacturing, especially in the production of durable and non-durable goods.
The upside to this is increased employment opportunities in both the US and Kansas City. Manufacturing has seen the availability of jobs in production companies. However, as employment increases, pricing is also going to up raising the standards of living.
Expectedly, the future in manufacturing shows an increase in manufacturing across Kansas City and the US its entirety in the next six months (Board of Governors of the Federal Reserve System, 2020). Expectedly, this will increase employment with the opening of more production companies across Kansas City.
The US economic growth is expected to decline by a minimal margin in the coming months of about 3.7% (Berry-Johnson, 2020). This is because of the prevailing COVID-19 pandemic that has brought focus on increased unemployment. Resultantly, the inflation rate is said to rise from 1.2% to 1.7% in 2021.
References
|
BERRY-JOHNSON, J. (2020, October 29). US Economic Outlook for 2019 and Beyond. The Balance; The Balance. https://www.thebalance.com/us-economic-outlook-3305669 BOARD OF GOVERNORS of the FEDERAL RESERVE SYSTEM. (2019). Federal Reserve Board - Beige Book. Board of Governors of the Federal Reserve System. https://www.federalreserve.gov/monetarypolicy/beige-book-default.htm BOARD OF GOVERNORS of the FEDERAL RESERVE SYSTEM. (2020). October 2020. In federalreserve.gov (pp. 1–32). |