On Wednesday, the Federal Reserve issued its latest Beige Book summary of regional economic conditions which they will use for the next Federal Open Market Committee meeting, to be held on May 6. This report will be just one of the inputs in the decision about whether or not to reduce interest rates yet again. My guess is that they won't, though they should have about six weeks ago. As the teenagers say, "what-everrrrr."

The report says that economic activity was lackluster for the period of its compilation, which was March 1 to April 15. It says that the mid-Atlantic (Virginia through South Carolina [hey, don't look at me, I don't make these districts]) is having "continued modest growth." Reports from New England, the Midwest, South, and Western areas were "still mixed or soft." The report was optimistic that the "retail environment would improve within the next six months" because of the improving weather and relief from the transition of the Iraq situation from war to rebuilding.

There was general weakness in manufacturing, although some optimism that things would be improving in the next six months was generally evident (see the latest durable goods comments below). The "cautious attitude toward [business] spending" was noted. The report indicated that the worst is probably over for the labor markets, and probably in most other economic measures as well.