Fed report sees 'slight or modest' economic growth as inflation ...

Most of the U.S. has been seeing just "slight or modest" economic growth over the past two months or so, according to a Fed report ... SkipNavigationMarketsBusinessInvestingTechPoliticsCNBCTVWatchlistInvestingClubPROMenuKeyPointsMostoftheU.S.hasbeenseeingjust"slightormodest"economicgrowthoverthepasttwomonthsorso,accordingtotheFed's"BeigeBook."Thereportsaidmostdistrictsshowedpriceincreasesrisingat"strongorrobust"pace.TheFedisbeginningits"quantitativetightening"program,whichtechnicallystartedWednesday.VIDEO1:5901:59Fed'sBeigeBook:SomesofteninginconsumerspendingduetohigherpricesPowerLunchMostoftheU.S.hasbeenseeingjust"slightormodest"economicgrowthoverthepasttwomonthsorso,accordingtoaFederalReservereportreleasedWednesday.Whileall12Feddistrictsreportedcontinuedgrowth,thecentralbank'speriodic"BeigeBook"indicatedthatfouroftheregionsshowed"thatthepaceofgrowthhadslowed"duringthepreviousperiod.Thereportcoverstheperiodfrommid-AprilthroughaboutMay22.Inadditiontobroaderviewsontheeconomy,thereportsaidmostdistrictsshowedpriceincreasesrisingata"strongorrobust"pace.Whiletwodistrictssaid"rapidinflationwasthecontinuationofatrend,"threesaidpriceshad"moderatedsomewhat."Abouthalfthedistrictsreportedthatcompanieswerestillabletopasshigherpricesontoconsumers,thoughsomenoted"customerpushback,suchassmallervolumepurchasesorsubstitutionoflessexpensivebrands.""SurveysintwoDistrictspeggedyear-aheadincreasesoftheirsellingpricesasrangingfrom4to5percent;moreover,oneDistrictnotedthatitsfirms'priceexpectationshaveedgeddownfortwoconsecutivequarters,"thereportstated.StockpicksandinvestingtrendsfromCNBCPro:JPMorganmidyearoutlookshockerseesS&P500roundtriptonewrecord'Stronggrowthahead':BanknamesitstopEVbatterystocks,givingoneover60%upsideWharton'sJeremySiegeltellsinvestorsthey'won'tbesorry'inayeariftheystartdeployingcashAlso,thereportnotedsomeweaknessinretailasrisingpricesbitintosales,aswellashousing,whichalsoisbeingaffectedbyhigherinterestrates."Contactstendedtocitelabormarketdifficultiesastheirgreatestchallenge,followedbysupplychaindisruptions,"thereportsaid."Risinginterestrates,generalinflation,theRussianinvasionofUkraine,anddisruptionsfromCovid-19cases(especiallyintheNortheast)roundoutthekeyconcernsimpactinghouseholdandbusinessplans."ThereleasecomesastheU.S.facesacloudyeconomicpicture.First-quarterGDPcontractedata1.5%annualizedpace,andtheAtlantaFedistrackingasecondquarterexpansionata1.3%rate.AndonWednesday,JPMorganChaseCEOJamieDimonwarnedofdarkerdaysahead,advisinganalystsandinvestorsto"braceyourself"againstaconfluenceoffactors.OneofDimon'sbiggestconcernsistheFedbeginningits"quantitativetightening"program,whichtechnicallystartedWednesday.Thecentralbankisbeginningtoreducethe$9trillioninassetsitisholdingonitsbalancesheet,aprocessthatdisruptedmarketsandraisedgrowthconcernsduringitslastiterationfrom2017to2019.Thistimearound,theFedistakinganevenmoreaggressiveapproach,eventuallyallowingupto$95billionamonthinbondproceedstorolloffeachmonth,startinginSeptember.Theinitialphaseoftheprogramwillseeupto$47.5billionrolloff.TheFedalsoisraisinginterestratestocombatthehighestinflationtheU.S.hasseeninmorethan40years."Shrinkingcentralbankbalancesheetsaddanotherelementofambiguitytowhatisalreadyaperiodofheighteneduncertainty,"JonasGoltermann,seniormarketseconomistatCapitalEconomics,saidinanote."Afterall,QTissomethingofanexperiment:ithasonlybeentriedoncebeforeinrecenttimes.Andcentralbankersgenerallyseemalotlesssureabouthowtheirbalancesheetpoliciesaffecttheeconomyandfinancialmarketsthantheyareabouttheimpactofraisingorloweringinterestrates."Oneimportantelementthathaskepttheeconomyafloathasbeentherapidpaceofjobgains.TheBeigeBooknotedthatemploymentwasup"modestlyormoderately"acrossalldistricts,thoughthereweresomereportsofaslowingorfreezeinhiring."However,workershortagescontinuedtoforcemanyfirmstooperatebelowcapacity.Inresponse,firmscontinuedtodeployautomation,offergreaterjobflexibility,andraisewages,"thereportsaid.TVWATCHLIVEWATCHINTHEAPPUPNEXT|ETListenTVWATCHLIVEWATCHINTHEAPPUPNEXT|ETListen