Beige Book Sees Sluggish Economy in Wake of Attacks

October 24, 2001 ( - The September terrorist attacks brought the economy to a standstill followed by a short period of reduced economic activity, according to the Federal Reserve's latest Beige Book report.

That was the finding across all twelve Federal Reserve Districts covered in the report.

“Business activity recovered quickly from some aspects of the shock, such as reduced air cargo capacity, but longer-run effects are more difficult to assess,” the report, which covers information collected prior to October 15, reads.

The Beige Book is a summary of economic activity prepared for use at the next Federal Open Market Committee meeting, which is scheduled for early next month. At this meeting, the committee will decide whether or not the economy will benefit from another rate cut. Most analysts expect the Fed to cut interest rates at that meeting- the tenth cut of the year.

In addition to its report on the performance of various sectors of the economy, the latest Beige Book discusses the repercussions of the terrorist attacks in detail.

The report can be viewed at the Federal Reserve?s Web site at: