Fed Finds Growth Continuing Slowly

Economic growth continued slowly in April with little sign of upward pressure on industrial prices, according to a Federal Reserve survey of regional economic conditions released Wednesday.

The Fed’s economic evaluation, the so-called Beige Book prepared for use at its May 15 monetary policy meeting, was similar to its last two surveys in March and January. Those surveys reported slow but continued expansion and moderate inflation.

Based on the Beige Book survey alone, the Fed appears unlikely to move interest rates either up or down, said economist Robert G. Dederick of Northern Trust Co. However, Fed policy-makers likely will perceive more danger of inflation than indicated by the report, he said.

For most of 1988 and early last year, the Fed nudged rates higher to slow the economy and combat inflation.