Inflationary pressures can be eased by foreign markets recovery and growth. This indicates a slowing but still strong housing market. All speeches given by Federal Reserve Board members since the last meeting seem to be centered on the need to control the growth of the economy before it becomes inflationary. We agree with the consensus. Labor shortage persists, but with little inflationary pressures.
Bank lending is down, while retailers face a tough time staffing for the holidays.
Residential housing demand was slowing, while commercial construction was up. The labor market is tight, and wages rose slightly. The district seems to have the least concerns about the Y2K frenzy. Western districts had strong economic growth. Energy related activities picked up in the eleventh district, while agriculture suffered to an unusual dry weather.