The US economy has improved since early March, the Federal Reserve said last night, describing a broad but moderate recovery.
As it gears up for a key policy meeting later this month, the Fed said in its periodic Beige Book report that 'economic activity generally continued to improve.' 'While many districts described the improvements as only moderate, most districts stated that gains were widespread across sectors,' it added.
But the Fed warned that higher prices for things like oil were taking their toll. 'Higher commodity costs were widely reported to be putting increasing pressures on prices,' the bank said.
The report was seen as further evidence that the recovery is firming. Analysts said the report was unlikely to herald any major changes to the Fed's policies.
The Fed's interest rate setting committee will meet on April 26-27, and is expected to keep rates at ultra-low levels and to continue rolling out a $600 billion asset purchasing program designed to stimulate the economy.
