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Fed’s Beige Book still can’t find inflation threat, despite labor bottlenecks
The Fed’s verdict: The Federal Reserve said the pace of growth in the U.S. was “split between modest and moderate” in its latest snapshot of the economy known as the Beige Book. The report covers Aug. 29 to Oct. 6. A stable economy and the tightest labor market in years, however, did little to move the needle on inflation. The Fed characterized the increase in wages and the cost of materials as “modest.” What happened: A trio of hurricanes, Harvey, Irma and Maria, were a bit of a damper on U.S. growth in September. Yet the economy appears to have weathered the storms better than expected. While some regions ... (full story)