Fed: Asian Turmoil Hurting U.S.
WASHINGTON (AP) _ American manufacturers and farmers are starting to feel the consequences of financial problems wracking Asia, the Federal Reserve said today.
``Asian financial turmoil and currency weakness have adversely affected demand for manufactured and agricultural exports,″ the Fed said in its ``beige book″ report, a survey of economic conditions by its 12 district banks.
``Some districts report increased competition from imports,″ it said.
Economists had been predicting for weeks that the sharp devaluation of many Asian currencies would hurt the U.S. economy by reducing Asia’s demand for American products and commodities and by effectively slashing the price on Asian goods selling in the United States.
Today’s report, based on information collected before Nov. 24, is the first clear evidence that is happening.