• Ahead of payrolls on Friday, here are key points from the Beige Book summary:
• "Labor market conditions remained solid. Employment continued to increase at a modest to moderate pace in most Districts despite hiring freezes by some firms and scattered reports of layoffs."
• "Several Districts indicated that a lack of available childcare continued to impede labor force participation. While labor markets generally remained tight, a few Districts noted that firms are becoming less flexible with employees and beginning to reduce remote work options."
• "Wages generally increased at a moderate pace, though some Districts noted that wage pressures had eased somewhat. Wage increases are expected to moderate further in the coming year."

The point on labor participation remaining impeded by lack of childcare is interesting after January payrolls report had shown a push higher in prime-age participation (albeit still remaining below pre-pandemic levels).