Tariff effects broaden across U.S.Staff Writer |
America Fed Chairman Jerome Powell
Tariff-driven price increases have spread more broadly through the U.S. economy, though on balance inflation has risen at a modest pace in most parts of the country, the Federal Reserve said.
Labor markets tightened across a broad range of industries, and wage growth "tended to the higher side of a modest to moderate pace."
At the same time, Fed Chairman Jerome Powell has signaled the Fed's three-year tightening cycle is drawing to a close and central bankers are looking for signs a global growth slowdown and a U.S.-China trade war might be weighing on the U.S. economy.
"Reports of tariff-induced cost increases have spread more broadly from manufacturers and contractors to retailers and restaurants," the Fed said in its report on Wednesday. ■
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