The Federal Reserve's "Beige Book" business survey came out today. The New York Times reports:

The Fed's regular "Beige Book," which surveys businesses in 12 metropolitan districts, declared economic activity as "softer, weaker" and "slower, sluggish" in most regions of the country. Activity did not pick up in any area.

Inflation remained an issue. Americans "were pinched by rising energy and food prices," the report said, leading many to delay big purchases like cars and household appliances. Sales of automobiles, particularly trucks and sport utility vehicles, also fell.

Retailers reported pressures to increase prices on popular consumer products, but many said they had trouble passing higher costs on to their customers.

The report came as the Fed appeared to be shifting its policy focus to fighting inflation. Though central bankers have acknowledged that growth was weak and faced further challenges, they have also warned that keeping prices in check would be a crucial goal of the coming months.

This confirms that the Fed can't cut rates any further.