Federal Reserve says US economy remains steady even budget battle started
According to the recent Beige Book report released by the US Federal Reserve, the country's economy was stable through early october. US government and Congress had been battling over the debt cap then.
The Fed said, "Reports from the twelve Federal Reserve Districts suggest that national economic activity continued to expand at a modest to moderate pace during the reporting period of September through early October."
Data coming from the Fed has been used by financial markets to have an overview of the US economy in general. The reference is called Beige Book because of the financial literature's cover. Financial markets had been going blind without precious data the Fed had been releasing since time immemorial since the first day of the government shutdown.
On the other hand, the newly-released data by the Fed had only captured the first week of the political deadlock. Moreover, the current data had forced the central bank to not make any changes in its USD85 billion monthly bond purchases. This had drawn a disappointing economic growth and hiring, as financial markets had expected the central bank to reduce its bond purchases.