Fed’s Beige Book Freaks Out Over Unprecedented Nationwide Shortages Of Everything | Easy Money

With the economy overheating, it will hardly come as a surprise that the latest Fed Beige Book – which found that the economy expanded at what the Fed absurdly called a “moderate pace” from early April to late May, at least clarifying that this was a “somewhat faster” rate than the prior reporting period – one of the top concerns was soaring costs, but nothing spooked the various Fed districts quite as much as what appears to be a shortage of everything, with district after district complaining about broken supply chains, a lack of workers, and critical commodities that just can’t be procured, all resulting in sharply higher prices, slower delivery times and all around chaos.

Manufacturers reported that widespread shortages – there’s that word again – of materials and labor along with delivery delays made it difficult to get products to customers.

Similar challenges persisted in construction.

Looking forward, contacts anticipate facing cost increases and charging higher prices in coming months.

Fed’s Beige Book Freaks Out Over Unprecedented Nationwide Shortages Of Everything | Easy Money