Chicago Fed survey: U.S. economy performed 'well below trend' in March

April 24 (UPI) -- The outlook on new hires, along with the perception of the economy in general, is on the decline, survey results from the Federal Reserve Bank of Chicago show.

An index used to gauge economic conditions declined by 29 points between March and April, which the Chicago Fed said Monday suggested the economy was performing "well below trend."

A series of rate hikes from the U.S. central bank is catching up with the rest of the economy. On Wednesday, the Beige Book, a summary of economic conditions across the 12 Federal Reserve districts, found that job growth moderated, though the picture was somewhat mixed.

"Overall economic activity was little changed in recent weeks. Nine Districts reported either no change or only a slight change in activity this period while three indicated modest growth," the report read. "Expectations for future growth were mostly unchanged as well; however, two Districts saw outlooks deteriorate."

For the Chicago Fed, the survey results showed that most respondents were pessimistic about the future. More than half -- some 65% -- said they expected to see a decline in economic activity over the next 12 months.

Policymakers at the U.S. central bank are trying to lower consumer-level inflation with aggressive rate hikes, while at the same time working to prevent a slowdown that would lead to a recession and widespread layoffs.

Those taking part in the Chicago Fed's survey, however, said hiring decreased and there was no expectation that trend would reverse over the course of the year.

The U.S. Federal Reserve increased its lending rates by 25 basis points amid concerns the March collapse of Silicon Valley Bank in California was the start of a global financial crisis. The St. Louis Fed said recently, however, that the risk of a repeat of the so-called Great Recession from 2007-08 was unlikely.

The Fed meets again next week and another rate hike of 25 basis points is widely expected as consumer-level inflation remains about 3% higher than its 2% target rate.