WASHINGTON (dpa-AFX) – According to a report by the US Federal Reserve at the beginning of the year, the US economy grew at a moderate to moderate pace. According to the economic report published on Wednesday (Beige Book), the economy is being dampened by ongoing problems in the supply chains. This applies above all to the construction industry. In mid-January, the Fed was still talking about moderate growth.
Growth was also weighed down by the corona pandemic, which at times led to higher absenteeism. Consumer spending was weaker than in the previous report. The severe winter weather also contributed to this.
The demand for workers remains high. However, widespread shortages remain. However, some districts reported some relaxation. The prices that companies were charging their customers would continue to rise at a robust pace. The report refers to the sharp increase in producer prices. This applies above all to transport costs.
The US inflation rate rose to 7.5 percent year-on-year in January, the highest in decades. The Fed is aiming for an inflation rate of two percent in the medium term. According to statements made on Wednesday, US Federal Reserve Chairman Jerome Powell expects the key interest rate to be raised for the first time this month since the beginning of the corona pandemic. He was considering proposing a 0.25 percentage point hike.
The beginning of the war in Ukraine played no role in the report. Data collection was completed on February 18th. The Fed’s economic report is published eight times a year. The most recent report was prepared by the St. Louis Regional Federal Reserve. The economic picture is based on surveys by the Fed of business contacts. The report played no role on the capital markets./jsl/he