WASHINGTON (dpa-AFX) - The U.S. economy continue to expand at a 'modest to moderate' pace in December and early January, according to the Federal Reserve's Beige Book.
Respondents to the Fed's survey were 'optimistic' about 2018 after seeing that wages increased in most districts of the country.
Some retailers highlighted that holiday sales were higher than expected. However, residential real estate activity remained constrained across the country due to limited housing inventory.
Most manufacturers reported modest growth in overall business conditions with increased capital expenditures.
On inflation, reports of pricing pressures were mixed across the country although several Districts noted increases in manufacturing, construction, or transportation input costs.
This Beige Book is likely to cement expectations that the Federal Reserve will gradually raise interest rates in 2018. Policy makers project three rate hikes over the course of the year, but have offered few clues about the timing of the next rate hike.
Copyright RTT News/dpa-AFX