The U.S. economy “downshifted slightly” in August as the renewed surge of the coronavirus hit dining, travel and tourism, the Federal Reserve reported Wednesday, but the economy overall remained in the throes of a post-pandemic rush of rising prices, labor shortages and stilted hiring. “The deceleration in economic activity was largely attributable to a pullback in dining out, travel, and tourism in most Districts, reflecting safety concerns due to the rise of the Delta variant, and, in a few cases, international travel restrictions,” the Fed reported in its latest Beige Book compendium of anecdotal information about the economy. Still the document, summing up information collected through Aug. 30 that will be part of the deliberations at the Fed’s Sept. 21-22 policy meeting, reported continued strong demand for workers and hiring made more difficult by “increased turnover, early retirements, childcare needs, challenges in negotiating job […]

Posted in: USA