Fed: U.S. Economic Growth on Track

The Federal Reserve reported last week business borrowing is robust, rising consumer spending, and tight labor markets indicate the U.S. economy remains on track for continued growth.

In its Beige Book summary of contacts with businesses in its 12 regional districts, the Fed said the overall outlook among businesses remained positive, but there was concern about possible future tariffs.

The overall economy appears to be improving, with some evidence that the tax cuts approved in December may have begun filtering through to business spending and investment.

The Fed reports increases in commercial and industrial lending.  Stronger growth in loan volumes was seen in commercial, industrial, and commercial real estate.

The jump in business borrowing could be a precursor to the sort of investment boom that Fed officials hope would follow from the recent steep cut in corporate taxes.