U.S. economy expanding at modest pace, Brexit weighs on some regions: Fed Beige Book
WASHINGTON—The U.K. vote to leave the European Union is causing concern among businesses in certain pockets of the U.S., a Federal Reserve report said Wednesday.
The Brexit vote was a factor in recent weeks across at least three areas, according to the central bank’s latest beige book, a review of regional economic conditions. But broadly, the report showed the U.S. economy is expanding at a modest pace.
In the Dallas region, for example, “outlooks were generally positive but more cautious, with the upcoming presidential elections and the Brexit vote driving some of the uncertainty,” the report said.
In the Chicago region, “financial market participants reported a significant increase in volatility, driven primarily by the United Kingdom’s vote.” In Boston, two technology firms cited the fallout from Brexit as a “potentially destabilizing factor,” though a commercial real estate contact there said instability in Europe could boost foreign investment in the U.S.