Dealer, FWIW:
Fed Survey: Only Scattered Wage Gains, Inflation Tame
Reuters
WASHINGTON (Aug. 11) - Less than two weeks ahead of a key meeting to discuss a possible interest-rate rise, the Federal Reserve Wednesday said it saw only scattered signs of pickups in wages and no broad rise in inflation.
The Fed's periodic Beige Book report, looking at coast-to-coast business activity, described the economy as strong but running up against constraints from shortages of labor and some supplies such as home-construction materials.
The Fed survey, conducted eight times a year, is based on interviews with business people in all 12 Federal Reserve districts in the United States.
The latest survey covers the period from mid June to early August and will be reviewed at the Fed's Aug. 24 meeting on rates.
'District reports indicate continued strength in economic activity, though there are widespread reports of supply constraints,' the Fed said. 'There is no evidence of any broad-based acceleration in prices of finished goods and services,' it added.
The central bank said that labor was scarce in just about all areas of the country, with shortages particularly acute in sectors such as construction. However, 'there have been only scattered reports of an actual acceleration in wages.'
Reut14:33 08-11-99
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