Fed Suggests Recession Nearing An End

The White House this week ridiculed Newsweek Magazine's cover that declared “The Recession is Over,” but the Federal Reserve reported Wednesday that, if the recession isn't over, it's getting close.

In its so-called “Beige Book,” the Fed concluded that the economy is no longer in a free-fall, and in fact, some regions of the country are starting to show signs of stabilization. The report is based on data collected from businesses across the country.

“The recession is nearing its end. But that doesn?t mean that every sector has turned the corner,” said Joel Naroff, chief economist for Naroff Economic Advisors, in Holland, Pa. “Some industries are starting to see some pick-up in demand but others will have to wait. In addition, any improvement is likely to be uneven and sluggish.”

The beige book covered the six-week period since the last book on June 10 and was prepared in advance of the August 11 and 12 meeting of the Federal Open Market Committee, which sets interest rates.

Analysts say they don't expect the FMOC to make any changes, keeping a key interest rate close to zero. The Fed may also buy billions of dollars in government and mortgage-related debt to try and keep mortgage rates low.

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