Fed Beige Book reports slight-to-moderate growth
Economic activity across the U.S. expanded at a slight-to-moderate pace in March and early April with tight labor markets and moderate wage growth, according to the Federal Reserve’s Beige Book.
All of the Fed’s 12 districts reported slight-to-moderate gains in recent months, the Fed said in its region-by-region roundup of anecdotal information known as the Beige Book. The report, prepared by the Federal Reserve Bank of St. Louis, was based on information collected through April 8.
Employment continued to increase nationwide, with nine districts reporting modest or moderate growth. The employment increases, according to the report, were largely concentrated in high-skilled jobs. Three districts reported slight growth.
The labor markets remain tight, however, restraining the rate of job growth. A majority of districts cited some difficulties finding qualified workers for both technical and professional positions. In fact, some firms were enticed to offer bonuses and expanded benefits packages in order to woo new employees.
Prices have also risen modestly since the release of the last report in March -- partially because of tariffs, freight costs and rising wages.
The Beige Book, released eight times per year, precedes next week’s two-day Federal Open Market Committee hearing, during which policymakers are expected to vote to keep interest rates steady.
During its March meeting, policymakers at the U.S. central bank largely approved a patient approach to monetary policy in the year ahead, signaling there will be no rate hikes in 2019 unless the economy improves.
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“With regard to the outlook for monetary policy beyond this meeting, a majority of participants expected that the evolution of the economic outlook and risks to the outlook would likely warrant leaving the target range unchanged for the remainder of the year,” the FOMC’s minutes said.