(Reuters) – U.S. economic activity was unchanged from July to the end of August, but businesses reported easing labor shortages and price pressures, a Federal Reserve report showed on Wednesday.
The U.S. central bank released its latest national rate hike as it considers whether to raise interest rates for the third time in a row 50 in September
“Although labor supply conditions have improved in almost all regions, overall labor market conditions remain tight,” the Federal Reserve said in its survey, known as the “Beige Book,” which Its area runs until August 29. “Price levels remain elevated, but nine districts reported some moderation in their gains.”
Fed Vice Chairman Lyle Brainard said earlier on Wednesday that the central bank would maintain Tight monetary policy “for as long as it needs to” to lower inflation, but did not speak at an upcoming policy meeting.
Federal Reserve Chairman Jerome Powell is scheduled to speak at 9:00: 12 Thursday EST (1310 GMT). The much-anticipated monthly inflation measure will be released in September 13.
The Federal Reserve has raised interest rates by
the benchmark since March, as it raised the benchmark overnight rate to a level consistent with suppressing demand across the economy enough to ease price pressures and reduce inflation to the 2% target.
Inflation has been at 29 year highs, more than three times the Fed’s target. While there have been some recent positive signs that supply chain problems are improving and labor market conditions are easing, policymakers remain concerned that higher inflation expectations could be entrenched among businesses and consumers.
They also pointed to rising risks that a series of aggressive rate hikes needed to reduce inflation could lead to a recession.
U.S. employers hired more workers than expected in August, the Labor Department reported Friday in its closely-watched monthly jobs report, but modest wage growth and rising unemployment also point to labor shortages Possibly relax.