Bloomberg Businessweek
Fed Says Most Districts Saw Flat or Declining Economic Activity
Sep 4, 2024
Steven Blitz, the Chief US Economist at TS Lombard, shares insights on the Fed's Beige Book findings, highlighting stagnant economic activity. Ian King and Mackenzie Hawkins discuss the semiconductor industry's hurdles, including Nvidia's stock plunge and Intel's struggles with government funding amid the CHIPS Act. Josh Patterson, CEO of Voltron, reveals how AI-powered chips are transforming big data operations. The conversation underscores the challenges and innovations shaping the economic landscape and tech sector.
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Quick takeaways
- The economic landscape is showing signs of caution, with many firms prioritizing essential hiring and maintaining stable employment despite increasing operational costs.
- Intel faces significant challenges in meeting performance metrics tied to U.S. government funding, amidst fierce global competition highlighting the importance of domestic semiconductor production.
Deep dives
Economic Activity Trends
Recent reports indicate a slight growth in economic activity across three Federal Reserve districts, but the overall picture has worsened, with districts reporting flat or declining activity increasing from five to nine. Employment levels have remained stable overall, yet there are reports of firms being cautious, filling only essential positions or reducing shifts and hours. Layoffs, however, have reportedly been rare, suggesting that employers are more focused on optimizing their current workforce rather than significant reductions. Despite moderate wage growth, increases in non-labor input costs and selling prices have been observed, reflecting a complex economic landscape.
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