The U.S. central bank's Beige Book provided the latest evidence the economy is stuck in a recovery too weak to generate new jobs, and reinforced the view in financial markets that the Fed will soon ease monetary policy further.

 

"National economic activity continued to rise, albeit at a modest pace," the Fed said in the report, which was prepared its next policy-setting session on November 2-3.

 

A separate report showing mortgage applications slumped last week highlighted lingering weakness in housing markets.

 

The Fed's report, which showed consumers were focused on buying only necessary items, had little impact on financial markets on Wednesday.

 

G20 FINANCE MINISTER MEET THIS WEEK