Economy Worsens, No Relief 'til Late '09: Beige Book

The Fed predicted more pain for the US economy in today's “Beige Book” report, with a turnaround not expected until late 2009 or early 2010, the Wall Street Journal reports. “National economic conditions deteriorated further,” across January and February, the Fed said. In a distressing turn, the slump has spread from the financial and manufacturing sectors into a “wide range” of general services.

Even health care, traditionally seen as recession-proof, has been feeling the downturn: The Fed noted that certain providers were seeing fewer patients because of a decline in elective procedures. Meanwhile, long-depressed areas saw no signs of recovery—"sales of new automobiles and light trucks remained exceptionally sluggish," the Fed said, while housing "remains in the doldrums in most areas.”
(More Beige Book stories.)