Beige Book Is Unexpectedly Blah

(RTTNews) - The U.S. economic recovery continued into the second quarter, albeit at a modest pace, according to the Federal Reserve's latest Beige Book.

The Beige Book, which gathers anecdotal evidence about economic conditions across the Fed's 12 districts, offered a somewhat less optimistic assessment than many analysts were expecting.

Weakness in the energy sector persisted despite a rally in oil prices, while manufacturing lagged.

Auto sales were good, but there was onlt modest jobs and wage growth around the nation.

The lackluster Beige Book raises some doubts about whether the Fed will raise interest rates in June.

Last week, Fed Chair Janet Yellen said it would be appropriate to hike interest rates in the "coming months" if warranted by incoming economic data.

Traders will be taking a close look at Friday's release of the May jobs report for further clues.