A report from the Federal Reserve says US economic growth remains on a steady track, with increasing pressure on inflation from a tight labour market and rising energy costs.
In its Beige Book, it said reports from all 12 of its districts indicated that economic activity continued to expand in March and the first half of April. The Fed will consider the report at its May 10 meeting on interest rates.
The Beige Book indicated some softening in what had been a sizzling US housing market. It noted that inflation pressures could be building as a result of the high cost of oil and other commodities, as well as tighter labour markets.
