US Fed Reserve warns of demand slowdown in several districts

US Federal Reserve

The US economy grew at a modest pace from May-mid to July-mid, according to a Federal Reserve report.

However, it warned of “growing signs of a demand slowdown in several districts.”

“Several districts reported growing signs of a slowdown in demand, and contacts in five districts noted concerns over an increased risk of a recession,” the Fed said in its “Beige Book” report, which was conducted across its 12 districts through July 13.

Substantial price increases were reported across all districts, with “most contacts expect pricing pressures to persist at least through the end of the year.”

The US Labor Department reported that annual inflation surged 9.1% in June, hitting the highest level since 1981.