MNI BRIEF: Beige Book: Inflation Slows, Credit Tightens

The Fed's latest Beige Book report Wednesday said price increases appear to be slowing, overall economic activity was little changed in recent weeks and several regions reported tighter lending standards following SVB's collapse.

"Economic activity was little changed in recent weeks. Nine Districts reported either no change or only a slight change in activity this period while three indicated modest growth. Expectations for future growth were mostly unchanged as well," the Fed said. "Consumer spending was generally seen as flat to down slightly amid continued reports of moderate price growth."

The Fed also said employment growth moderated as a small number of firms reported mass layoffs. "Wages have shown some moderation but remain elevated," the report said. "Overall price levels rose moderately during this reporting period, though the rate of price increases appeared to be slowing." (See: MNI INTERVIEW: Fed Close To Done As Credit Tightens–Kroszner)

"Several Districts noted that banks tightened lending standards amid increased uncertainty and concerns about liquidity," the report said. The San Francisco district said "lending standards tightened notably, and several depository institutions opted to reduce loan volumes, especially for new clients," and deposit outflows "have reportedly stabilized since late March."