Fed Snapshot Isn't Pretty Picture

Rising costs and worries about the economy are spreading throughout the country, a survey from the Federal Reserve shows.

Despite isolated signs that employees are asking for higher wages to offset rising prices, higher fuel costs and higher prices on related goods continue to be worrisome. Now, the dual threats of inflation and sluggishness suggest the Fed will likely keep interest rates steady at 2% until a clearer picture of the U.S. economy emerges.

The Fed's "beige book," a roundup of reports from the 12 regional Fed banks released every six weeks, shows economic activity is weak across most of ...