Fed Says Economy Grew Modestly But Recession Worry Dims Outlook

The Federal Reserve sounded a note of caution on the US economy, which expanded “modestly” through early October with slowing activity raising recession concerns amid some indications of easing inflationary pressure.

“Outlooks grew more pessimistic amidst growing concerns about weakening demand,” the Fed said Wednesday in its Beige Book report, published two weeks before each meeting of the policy-setting Federal Open Market Committee. “Several Districts reported a cooling in labor demand, with some noting that businesses were hesitant to add to payrolls amid increased concerns of an economic downturn.”