MNI BRIEF: Economic Activity Picks Up A Bit - Fed Beige Book
MNI (WASHINGTON) - U.S. economic activity rose "slightly to moderately" from late November through December as consumer spending was boosted by robust holiday shopping that exceeded expectations in most Fed districts, according to the central bank's Beige Book report Wednesday.
"Employment ticked up on balance, with six Districts reporting a slight increase and six reporting no change. Contacts in several service industries, notably healthcare, continued to see job growth. Wage growth picked up to a moderate pace in most Districts, though there were some reports that wage pressures had eased," the report said. "Prices increased modestly overall, with growth rates ranging from flat to moderate."
The report comes as investors are wondering whether and when the Federal Reserve can deliver additional interest rate cuts this year against a backdrop of strong growth and sticky inflation pressures. (See MNI INTERVIEW: Fed Won't Consider Cuts Until March-Benigno)