Fed's Beige Book lifts lid on inflation

[Career Prole]

WASHINGTON (AFP) - Healthy industrial activity is keeping the US economy ticking along, but inflationary pressures on the back of high oil prices are building, the Federal Reserve said.

<snip>

The spike surprised the markets and sparked heated debate among economists over the dangers of inflation in the US economy. In any case, the Fed has been gradually tightening interest rates since June last year to cool activity.

"In two-thirds of the districts, retail or tourism contacts expressed concern that high energy prices were already, or could soon be, damping consumer demand," the Beige Book said.

"Much of the pressure derives from energy costs, although contacts cited the lower dollar and rising costs of building materials as well," it added.
http://story.news.yahoo.com/news?tmpl=story&ncid=1203&e=2&u=/afp/20050420/bs_afp/useconomyratesbank&sid=96001027

Tickticktickticktick...

[hedda_foil]

1. Heavy industrial activity?

In what country??????

[TexasLawyer]

5. Good point!

[Delphinus]

2. Really?

Is that why the headlines in this morning's paper says GM lost $1.1 billion?!

[cornermouse]

3. I keep wondering how much all that oil that Bush has been

buying, in direct competition with the American consumer, and stashing has inflated the price of oil for the rest of us.

[Roland99]

4. Here come the rate hikes...there goes the housing boom

BTW, vote it a '5'.

[Career Prole]

6. I did...it was sportin' a pair of ones when I first read it.

We can guess where those came from, eh?
"Moran's Bush Bad-News Rating Service" :D

[Gin]

7. I heard on NPR that the energy bill has a good chance this time

since oil and gas are so high...made me wonder.... if the whole thing was rigged to get shrub what he wanted.