Beige Book backs stimulus

Ben Southwood
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THE US could be in for further monetary stimulus, after the Federal Reserve’s Beige Book report on the economy, out yesterday, gave little sign of price pressures but revealed continued worries about growth.

The report said manufacturers were worried about the impact of the so-called “fiscal cliff” of tax hikes and spending cuts due in 2013. And it found little evidence to suggest prices were on the rise. Together these open the door for the Fed to expand its ultra-accommodative monetary policy even further.