Fed: High energy, food prices keep economy weak

[Lone_Star_Dem]

Source: Associated Press

WASHINGTON - The Federal Reserve says the economy remained "generally weak" heading into summer as rising costs for energy and food pounded consumers and forced some companies to push their own prices higher.

The Fed's new snapshot of business conditions, released Wednesday in Washington, underscored two big sore spots for the country: listless economic activity coupled with lofty energy and food prices. Those rising prices raise the risks of both spreading inflation and putting another drag on overall economic growth.

Chafing under price hikes, "consumer spending slowed ... as incomes were pinched by rising energy and food prices," the Fed said. Manufacturing activity, meanwhile, was "generally soft" and the housing market remained stuck in a rut.

Businesses also were hit by rising costs, especially for energy, metals, plastics, chemicals and food. Such reports were "widespread," the Fed said. To cope, manufacturers in several areas "noted some ability to pass along higher costs to customers" the Fed said. Retailers, however, reported "mixed results with respect to raising final goods prices," the Fed said.

Read more: http://news.yahoo.com/s/ap/20080611/ap_on_go_ot/fed_economy;_ylt=AnmVEH..9y4TyPcMoRvw62Ks0NUE

[SpiralHawk]

1. Actually, so-called 'conservative' republicon policies & corruption keep the economy weak

Ptooey

[Lone_Star_Dem]

4. That's it in a nutshell.

We wouldn't have our current high energy and food prices of it weren't for the Republican's policies and corruption.

It's been a long time coming but the piper is finally demanding to be paid.

[PugNot]

5. Exactly

We should end ALL corporate welfare. That includes farming, oil companies, alternative energy companies,airlines, automakers,financial bailouts, etc. Let the market decide who survivies. Drop the subsidies for farming and the food prices will drop, Gaurenteed..Put the money saved into universal healthcare..Hopefully Obama will get it done.

[Javaman]

6. Welcome to DU!!!

Good first post! :)

[MadinMo]

2. {Slaps forehead}..... ya think?

[kestrel91316]

3. Welcome to the Second Great Depression. 'Cause they just HAD

to do something about all those pesky "middle class" folks and their silly little "American Dream".