According to the Federal Reserve, despite “slight” price pressures and lenient consumer spending the U.S. economy has developed at a moderate pace since the second quarter. It was mainly positive among the sectors of the economy which include real estate, retail sales, and manufacturing. The Fed’s 12 districts predict a modest overall growth.
The Fed policy-setting panel will meet by July 26-27 and investors perceive a possible rate increase of 5 percent however the Beige book suggests that the Fed is not going to rush in raising interest rates. Fed officials have measured the progress of the mandate for maximum employment in which the rate hike and higher wages with the economic advances will affect inflation. Labor market conditions are currently constant with employment growing since there has been a strong demand in the labor sector.
In June, payrolls have increased to 287,000 and Fed reports that U.S. consumer spending “was predominantly optimistic”.
The material has been provided by InstaForex Company – www.instaforex.com