Fed Survey Shows Economy Improving

The U.S. economy, knocked for a loop by the blizzards of January, regained its footing in February, according to the latest nationwide survey of business conditions by the Federal Reserve.

Private economists said the reports, compiled by the Fed’s 12 regional banks, were one more indication that the central bank will not cut interest rates when policy-makers meet on March 26.

The Fed’s business survey reported that all regions of the country were reporting growth at moderate to solid levels in February following January’s severe winter storms. It said the pickup in activity was coming without any worrisome signs of higher inflation.

Among the encouraging signs, the Fed cited significant gains in sales of new homes across most of the country, a surge in refinancing of existing mortgages by homeowners taking advantage of lower rates and a bounce back in retail sales from depressed January levels.

The central bank said that manufacturing activity had also rebounded on the East and West Coasts although it found continued weakness in the Midwest.