Though recent distress in financial markets has “deepened” the housing slump, the overall U.S. economy has seen little impact so far, the U.S. Federal Reserve said today.

That assessment, contained in the latest beige book, suggests that while a rate cut in two weeks may still be likely, Fed officials may not see the same need for aggressive easing that financial markets expect.

“Outside of real estate, reports that the turmoil in financial markets had affected economic activity during the survey period were limited,” according to the beige book — a summary of economic activity prepared for the Sept. 18 Federal Open Market Committee meeting. The survey period ended Aug. 27.

The Fed is widely expected to lower the federal-funds rate for the first time in more than four years at this month’s meeting, by a quarter percentage point to 5%. Last month, it cut the discount rate it charges banks that borrow directly from the Fed by 50 basis points to 5.75%.

Tighter lending standards as a result of financial strains were “having a noticeable effect on housing activity,” which “added to uncertainty about when the housing market might turn around,” according to the beige book, which was prepared by the Cleveland Fed.

Most Fed banks report sales activity and prices as either flat or falling.

Still, “a number [of district Fed banks] commented that credit availability and credit quality remained good for most consumer and business borrowers,” the Fed said, and commercial real estate “was generally stable to expanding.”

According to the beige book, consumer spending saw “modest to moderate increases,” while automobile sales were “slow or subdued” in most regions.

Most Fed district banks reported “at least modest” gains in employment, the beige book said, while wage increases remained “moderate or steady.” There was “little change” in overall price pressures, the Fed said.