Fed survey sees signs recession is easing

The economy’s sharp downhill slide eased in the late spring, and hopes for future business activity improved, suggesting that the worst of the recession has passed. A Federal Reserve snapshot of economic conditions issued today found that five of the Fed’s 12 regions said that the “downward trend is showing signs of moderating.” In addition, “several” regions said their expectations of future business activity have improved, although they don’t see a “substantial increase” through the end of the year, according to the Fed report. In the last survey, several regions simply noted signs of some stability at low levels. Altogether the assessments of businesses on the front lines of the economy appeared to be slightly better than those they provided in the previous report issued in mid-April. The Fed survey is consistent with observations made by Fed Chairman Ben Bernanke and other central bank officials that the recession, which started in December 2007 and is now the longest since World War II, is loosening its strong hold on the economy. The survey’s findings will figure into discussions when Bernanke and his colleagues meet June 23-24. Some believe the Fed will move to increase its purchases of government bonds in a bid to drive down rates on mortgages and other consumer debt. The goal is to spur Americans to buy more, which would aid the economy.