U.S. Economy Slows In Some Areas, Fed’s Beige Book Survey Shows

(Bloomberg) -- Economic growth slowed in recent weeks in some parts of the US, the Federal Reserve said.

“Four districts explicitly noted that the pace of growth had slowed since the prior period,” the central bank said in its Beige Book report Wednesday. 

The report was based on anecdotes collected by the Fed's 12 regional banks through May 23 and compiled by the Federal Reserve Bank of Philadelphia.

A separate report released Wednesday by the Labor Department showed that US job openings fell in April from a record in the prior month but remained elevated, with roughly two job openings for every unemployed American. That suggests little relief for employers struggling to attract and retain workers. Another update on the labor market will come Friday, when the government releases the jobs report for May. 

Fed officials lifted interest rates by a half point in May and signaled they are likely to make similar increases in June and July as they work to tame the hottest inflation in decades.

Atlanta Fed President Raphael Bostic said last month that the Fed could take a pause in September if inflation comes down over the summer. But Fed Governor Chris Waller said this week that he supports raising rates in half-point increments until he sees inflation coming down to the Fed's 2% goal. 

Policy makers will also begin shrinking the Fed's $8.9 trillion balance sheet this month, launching a second tool to help them battle rising prices. But officials are unsure of what its effects will be on the economy and on markets. The Federal Open Market Committee holds a policy meeting on June 14-15.

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