U.S. economy shows only modest signs of inflation pressures: Fed
Source: Reuters
Wed Apr 19, 2017 | 2:15pm EDT
By Lindsay Dunsmuir | WASHINGTON,
The U.S. economy expanded at a modest-to-moderate pace between mid-February and the end of March, but inflation pressures remained in check despite more difficulties in attracting and retaining workers, the Federal Reserve said on Wednesday.
"On balance, prices rose modestly," the U.S. central bank said in its periodic gauge of the health of the economy derived from surveying business contacts nationwide. Firms mostly expected price growth to be mild to moderate over the coming months, the Fed added.
It raised its benchmark interest rate in March for the second time in three months and many policymakers appear bullish on the prospects of more tightening this year with the nation near full employment and inflation slowly rising. That said, there is still debate within the Fed about just how rapid and sustained the pickup in inflation will be given that it has struggled to reach the central bank's 2 percent target over several years.
Elsewhere in the report, most Fed districts said businesses had experienced more difficulty filling low-skilled positions and a larger number of firms said they faced more problems retaining workers.
Read more: http://www.reuters.com/article/us-usa-economy-beigebook-idUSKBN17L2FH
nycbos
(6,034 posts)bucolic_frolic
(43,155 posts)Not only are they no longer the lowest price in town on the items I looked at, but
their major competitor is cheaper than they were, and that's a reversal
To call it mild would be inaccurate in my view
I'd call it persistent, entrenched across all product lines, with pricing power for
firms and local managers to grab what they can. Prices often differ store to store
for the same merchant, just depends on locale and what they think they can charge,
or sometimes availability
Don't believe the Fed on this one
CountAllVotes
(20,868 posts)Lettuce was $3.89/head at the store yesterday.
Prices on other things are way up too!
What a crock of lies is all I can say as inflation is in our faces!