From Associated Press via Transport Topics.
The U.S. economy was expanding at a modest pace in September and into October despite the fact manufacturing was being hurt by rising trade tensions and weaker global growth while adverse weather was affecting farmers.
The Federal Reserve, issuing its latest assessment of business conditions around the country, reported Oct. 16 that “persistent trade tensions and slower global growth” were weighing on the economy.
The survey, known as the Beige Book, will be used by Fed officials when they meet Oct. 29-30 to decide whether to cut interest rates for a third time this year.
Financial markets are expecting another rate cut as the central bank seeks to protect the economic expansion from the fallout from a trade war between the world’s biggest economies, the United States and China.
The findings of the Beige Book likely will be cited by Fed officials who believe the central bank should cut rates again because of rising risks that the nation’s longest recovery, now in its 11th year, could be derailed by various adverse headwinds.
The report, compiled from information gathered by the Fed’s 12 regional banks, said that the banks’ business contacts still expected the economic expansion to continue but many had lowered their outlooks for growth over the next six to 12 months.
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