districts

U.S. economy has lost momentum over the past 2 months, only 3 of 12 districts report growth. More than 20 US state economies are now in, or near, a recession. Junk bonds break 4-month downtrend.

Junk bonds are high-risk corporate debts offering higher returns to investors. The chart shows their yields (interest rates) had been falling for 4 months—a positive sign of lower perceived risk—but recently spiked to 6.84%, breaking that downtrend. Implications: Rising yields… …

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Fed’s Beige Book August 2023: “Some Districts highlighted reports suggesting consumers may have exhausted their savings and are relying more on borrowing to support spending.” “Many contacts suggested “the second half of the year will be different” when describing wage growth. Ruh-roh…

by Dismal-Jellyfish https://www.federalreserve.gov/monetarypolicy/files/BeigeBook_20230906.pdf This report was prepared at the Federal Reserve Bank of Kansas City based on information collected on or before August 28, 2023. Highlights: “Some Districts highlighted reports suggesting consumers may have exhausted their savings and are relying …

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