A person wearing a face mask walks past a shuttered J Crew storefront in Philadelphia on May 4.
As monetary policymakers prepare for their next meeting later this month, the report shows the economy has not seen the sharp bounceback some had predicted, and which President Donald Trump has been betting on as the November presidential elections approach. Home and vehicle sales were strong but “many districts noted a slowing pace of growth in these areas, and total spending was still far below pre-pandemic levels”, the Fed said.
In Chicago, “Employment and manufacturing increased strongly”, but a full recovery is not expected until late next year. In the Philadelphia area “uncertainty is extremely high, as contacts worried about the end of stimulus measures, pending layoffs and an inevitable rise of evictions, foreclosures, and bankruptcies”.