Yahoo Finance Live anchor Dave Briggs examines the financial state of the American consumer as the Fed aims to push through another 75 basis-point rate hike.
DAVE BRIGGS: OK, let's get you up to speed now with the Fed just releasing its Beige Book, a survey of economic conditions based on data from 12 district banks. Nice cameo there by Seana. Didn't get enough camera time. The find--
SEANA SMITH: I was just trying to get in your shot.
DAVE BRIGGS: You're good at it. The findings, economic activity was essentially unchanged on balance since early July. Five districts actually reported slight to modest growth in activity. Households always key, continued to trade down and shift spending away from discretionary goods and towards things like food and other essential items. Now, auto sales remain muted, but that's largely on supply, while travel and leisure spending showed a significant uptick.
And it looks like a third consecutive 75-point hike is coming from the Federal Reserve at their next meeting in just two weeks' time. "The Wall Street Journal" reporting that the Fed is, quote, "on a path" towards the 3/4 of a point increase that markets have been banking on. And Federal Reserve Vice Chair Lael Brainard saying today, the Fed is, quote, "in this for as long as it takes to get inflation down," leaving no doubt that they will not cut rates late next year. Fed fund futures now have an 82% chance of that 75-point hike. The Fed has increased rates four times this year for a total of 2.25 points.