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The Fed's Beige Book report had a beige prediction for the U.S. economy.

Current Economic Conditions, June 5, 2013

Overall economic activity increased at a modest to moderate pace...

The manufacturing sector expanded in most District...

The defense industry experienced weakening activity...

Consumer spending...slight to moderate gains...

Nonfinancial services...slight to moderate gains...

Residential real estate and construction activity increased at a moderate to strong pace in all Districts. Several Districts reported that higher demand and low inventory of homes available for sale are
resulting in multiple offers on properties...

Overall bank lending increased modestly...
[end quote]

The Beige Book report is beige -- not terrible but not exciting. It's loaded with details from each Fed District, since each is different.

Overall, the economy is likely to progress in the slow-growth trend that has held since the recovery began to stabilize in 2010. Different districts will see different strengths and weaknesses.

Since the stock market has been diverging higher and higher compared with the growth of GDP, the situation is becoming less stable. The economy isn't growing fast enough to catch up with the growth in stock prices. This may be a reason for today's fall in stock indexes.

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