WASHINGTON, Nov. 29 (Xinhua) -- U.S. economy continued modest to moderate growth pace in October and mid-November, with price pressures building up, said the Federal Reserve on Wednesday.
"Economic activity continued to increase at a modest to moderate pace in October and mid-November,...There was a slight improvement in the outlook among contacts in reporting Districts," said the Fed in its latest survey on economic conditions, known as the Beige Book.
According to the report, outlook for holiday sales was optimistic despite current flat retail and auto sales. Manufacturing activity continued expansion during the reporting period, said the report.
Employment growth has increased since October, said the report. It showed that most Districts reported employers were having difficulties financing qualified workers across various skill levels.
With the job market tightening, wage increases were seen in positions that remain difficult to fill in. Many Districts reported that employers were raising wages and bonus to attract and retain employees, said the report.
Price pressures have strengthened since October, said the report, as most Districts reported increases in selling prices and non-labor input costs.
Fed chair Janet Yellen said before the Congress Joint Economic Committee on Wednesday that it's appropriate for the central bank to continue gradual interest rate hikes on the expectation that the economy and job market would remain strong.
Although, she didn't address the central bank's moves in the short term, market watchers widely believed that her remarks didn't sway market expectation that there will be one more rate hike in December.
The Fed will hold this year's last policy meeting on Dec. 12 and 13.
