The Federal Reserve in its Beige Book Wednesday said inflationary pressures have strengthened, paving the way for an interest rate hike in December.
The U.S. economy continued to grow at a “modest to moderate pace” through mid-November as the labor market tightened, the survey also noted.
“Most districts reported employers were having difficulties finding qualified workers across skill levels,” the report said. Still, “wage growth was modest or moderate in most districts.”
Hours before, the Commerce Department reported that U.S. gross domestic product surged up by an upwardly revised 3.3 percent in the third quarter compared to the originally reported 3.0 percent jump. Economists had expected the increase in GDP to be upwardly revised to 3.2 percent.
Also today, Federal Reserve Chair Janet Yellen cemented expectations for a U.S. interest rate hike in December with a rosy assessment of the domestic economy.
The outgoing Fed leader also said that inflation will move toward the Fed’s 2% annual target.
“The economic expansion is increasingly broad-based across sectors as well as across much of the global economy,” Yellen said in her remarks.
The material has been provided by InstaForex Company – www.instaforex.com
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