ECONOMY/FEDERAL RESERVE: “Economic activity expanded at a ‘modest to moderate pace’ in recent weeks amid signs of rising prices and ongoing strength in labor markets, a Federal Reserve report said Wednesday [11-29-17].
Price pressures strengthened since the last report, the Fed said in its latest roundup of anecdotal information about regional economic conditions known as the beige book. Most districts reported modest to moderate growth in selling prices and moderate increases in input costs.
Signs of stirring inflationary pressures offer support to the Fed’s plans to gradually raise short-term interest rates. Fed policy makers have expressed puzzlement about the surprising softness in inflation readings in recent months.
Wednesday’s report said most districts also had modest to moderate growth in employment from October through Nov. 17…
The prior beige book report, released Oct. 18, found economic activity grew at a measured pace across the country in September and October, despite disruptions caused by the late-summer hurricanes in the Southern and Eastern U.S.
Wednesday’s report showed the aftereffects of the storms are still rippling through the economy. Construction material costs rose in most regions, with many districts citing higher demand due to rebuilding efforts. The Dallas district said business had mostly returned to normal after Hurricane Harvey.”
-Harriet Torry and Sharon Nunn, “Fed Reports Economic Gains, Strengthening Price Pressures,” The Wall Street Journal online, Nov. 29, 2017 02:20pm