WASHINGTON: Most regions of the US economy expanded in recent weeks, and there was "modest" upward pressure on wages and overall prices, the Federal Reserve said in a report Wednesday.
Ten of the Fed's 12 districts reported "moderate", "modest" and for one, "slight" growth, while conditions were flat in Atlanta and Kansas City, according to the Beige Book.
"Weakening activity was attributed in part to the strong dollar, falling oil prices, and the harsh winter weather," it said.
The report, based on surveys from mid-February through the end of March, showed that labor markets remained stable or continued to score modest improvements.
Many Fed districts reported layoffs related to the decline in oil and gas prices.
The difficulty in finding skilled workers appeared to grow compared with previous Beige Book reports, with that problem now frequently reported.
"Districts noted modest upward pressure on wages and overall prices," the report said.
The new Beige Book will serve as a basis for discussions at the Fed's next monetary policy meeting on April 28 and 29.
The Federal Open Market Committee, the Fed's policy arm, will debate its first interest rate increase since 2006.
The hike in the federal funds rate, pegged near zero since late 2008 at the height of the financial crisis, is expected as early as the bank's June 16-17 meeting.
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