WASHINGTON – The Federal Reserve says the U.S. economy continued to expand in early spring, with a tight labour market and many companies are reporting rising wages.
In its most recent examination of the economic conditions, rural, the central bank believes that the 12 regional banks, depicted growth as “modest or moderate” from mid-March to early April. The strength came from consumer spending, tourism, housing and industry.
The report suggests that companies reported tight labor market with more turnover and a larger wage increase for workers whose skills were in short supply.
The Fed survey, known as the Beige Book, will be used when Fed officials next to each other on May 2-3. The Fed increased rates in December and March, but analysts are not expecting a rate hike in May.