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In front of a job center in Salt Lake City: The US has more than twice as many unemployed today as it did before the pandemic
Photo: Rick Bowmer / DPA
According to the Fed, the US economy continues to recover from the sharp slump in the corona crisis.
In most central bank districts, economic activity has increased, according to the Fed's economic report (Beige Book).
However, growth remains low in some industries and parts of the country.
And economic activity is still significantly lower than it was before the pandemic began in the United States.
According to the report, households and companies continue to struggle with the consequences of the corona crisis.
In addition, the pandemic is causing uncertainty as to how the economy will develop.
This has a negative effect on consumer confidence and business activities throughout the USA.
Unemployment is falling again
The situation on the labor market has eased somewhat.
According to the Beige Book, there has been a slow increase in employment, especially in the services sector.
During the peak of the corona crisis, there was a sharp rise in unemployment in the USA.
At that time, in April the unemployment rate jumped from 4.4 to 14.7 percent.
Since then, the rate has fallen: to 10.2 percent in July.
The US government's August labor market report is expected on Friday.
Analysts expect the unemployment rate to fall again to 9.8 percent.
Just a few days ago a Fed director signaled that the sluggish economic recovery could call the central bank into action "in the coming months".
Lael Brainard said the Fed had to move from stabilizing to a more stimulating course.
The central bank had already launched numerous loan programs during the corona crisis and lowered the key interest rate to the range between zero and 0.25 percent to help the economy get back on its feet.
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clh / dpa-AFX / Reuters