Fed: High energy, Food Prices keep Economy Weak

June 11, 2008 11:27:38 AM PDT
The Federal Reserve says the economy remained "generally weak" heading into summer as rising costs for energy and food pounded consumers and forced some companies to push their own prices higher. The Fed's new snapshot of business conditions, released Wednesday in Washington, underscored two big sore spots for the country: listless economic activity coupled with lofty energy and food prices. Those rising prices raise the risks of both spreading inflation and putting another drag on overall economic growth.