MNI BRIEF: Price Gains Slowing, Activity Flat-Fed Beige Book

The U.S. economy remained stable at weak levels while price increases and employment slowed, the Fed's Beige Book showed Wednesday, which should give policymakers comfort that their interest-rate hikes are having the desired effect.

"Economic activity was little changed overall in April and early May. Four districts reported small increases in activity, six no change, and two slight to moderate declines. Expectations for future growth deteriorated a little, though contacts still largely expected a further expansion in activity," the report said. (See MNI INTERVIEW: U.S. Consumption Decline Could Play Out Slowly)

The Fed said employment increased in most Fed districts but at a slower pace, while prices rose moderately and the rate of rises slowed. Still, "contacts in most Districts expected a similar pace of price increases in the coming months."