Transcripts

The Beige Book Finds Signs of Recovery

SUSIE GHARIB: The Federal Reserve said today it sees some faint signs of progress in the U.S. economy. The central bank released its beige book survey of regional economies around the country it showed the pace of decline in economic activity is slowing, signaling the possible beginning of a recovery. The survey also described grim economic conditions with weakness in the job market, manufacturing sector and housing industry. Still, UBS economist Jim O'Sullivan is encouraged by the Fed's report.

JIM O'SULLIVAN, SR. ECONOMIST, UBS SECURITIES: I think the first step is a fading of the rate of decline and I think that's clearly what we're seeing right now. It's not just the beige book. We've seen that in the consumer spending numbers. We've seen it in consumer confidence. We've seen it in home sales. And none of these numbers are suggesting out right strength yet, but unambiguously they are starting to signal at least a fading of weakness and we think that's the first step toward a recovery in the second half of this year.