P.M. BRIEFING : Fed Predicts More Slow Growth

The Federal Reserve Board, in its regular “beige book” review of the domestic economy, today predicted more slow growth in the months ahead and little change in the moderate inflation rate.

The Fed also reported there was little evidence of a widespread credit crunch.

“Reports on the behavior of consumption are mixed, and construction is indicated to be softening further,” the Fed said. “Capital goods industries are, on balance, pointing toward growth.

“Manufacturing is expected to strengthen” in some regions, the Fed indicated in the report, which is issued eight times a year.

The nationwide survey also said there has been “little change in the underlying inflation rate,” which has been hovering around 4% and 5%.

Retail sales have slowed and are expected to remain down in the short term.