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Good news for Trump as Fed’s Beige Book sees ‘slight to moderate’ economic growth despite COVID-19

A Gallup survey from last month also found that 56 percent of Americans believe they are better off than they were four years ago

editor: REMIX NEWS
author: Dénes Albert
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President Donald Trump’s reelection campaign may have some good news to work after data the Federal Reserve system showed that the recovery of the United States economy is ongoing despite the epidemic

The leadership of the Federal Reserve system (Fed), which acts as the US central bank, reported on the reuslts in its October Beige Book released last week.

The so-called “Fed Beige Book” is a regular publication of the bank, which is essentially a “mood report” on the economic condition of the 12 regional economic Fed districts. Their data is based on information from local economic operators.

“Economic activity continued to increase across all Districts, with the pace of growth characterized as slight to modest in most Districts. Changes in activity varied greatly by sector. Manufacturing activity generally increased at a moderate pace,” the document reads.

Trump often scores highly from voters on the issue of the economy. A Gallup survey from last month found that 56 percent of Americans say they are better off now than they were four years ago at the end of Barack Obama’s term as president. 

The Fed’s report also showed that demand in the housing market is constantly growing, mortgage lending is rising, and the downturn due to the coronavirus epidemic has mostly hit the commercial real estate market. Consumption is similarly on the rise, although the Fed says restaurant owners are worried about the colder weather because so far with tables on the streets, they have been able to make up for much of the loss of revenue due to the epidemic.

“Looking ahead, manufacturers and wholesalers remained largely optimistic, while transportation & warehousing contacts have grown increasingly pessimistic,” the Beige Book reads.

In American political life, despite these findings, several voiced concerns about a possible slowdown in economic recovery. The epidemic of the new type of coronavirus is intensifying again. Moreover, Republican and Democratic lawmakers have yet to agree on another stimulus package that would, among other things, provide one-time relief to Americans who have lost their jobs due to the epidemic.

The US Congress has so far passed an economic recovery package worth about $3,000 billion, but the law passed to supplement unemployment benefits and the ban on evictions have expired.