MNI BRIEF: US Economy, Inflation Softening-Fed's Beige Book

The U.S. economy has softened while inflation has ebbed from very high levels in recent weeks, the Federal Reserve's latest Beige Book published on Wednesday said.

"Economic activity was unchanged, on balance, since early July, with five districts reporting slight to modest growth in activity and five others reporting slight to modest softening," the report said. "Price levels remained highly elevated, but nine districts reported some degree of moderation in their rate of increase. Employment rose at a modest to moderate pace in most districts."

Cleveland Fed President Loretta Mester told MNI in a webcast Wednesday it's still too soon to say inflation has peaked and she would like to keep raising rates until they are above 4%.