US economy: tighter job market, muted inflation pressure

CGTN

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US economy grows at moderate pace in June, with tighter

labor market and muted inflation pressure, according to the latest

survey results released by the Federal Reserve on Wednesday.

"Economic

activity expanded across all 12 Federal Reserve Districts in June, with

the pace of growth ranging from slight to moderate," said the Fed in

its latest Beige Book which gauges its 12 districts' economy.

The majority of the districts expected the economy to grow at a modest to moderate pace in the months ahead, said the report.

US central bank will continue to raise interest rates

gradually and shrink its balance sheet this year, while monitoring

inflation closely,Janet Yellen, U.S. Federal Reserve Chair said

Wednesday.

"The (Federal Open Market) Committee

continues to expect that the evolution of the economy will warrant

gradual increases in the federal funds rate over time to achieve and

maintain maximum employment and stable prices," Yellen said in her

prepared testimony before the U.S. House Financial Services Committee.

Inflation

in the US has softened in recent months, which triggers discussions

about the pace and timing of the future rate hikes among Fed officials.

Consumer spending, which accounts for nearly 70 percent

of the US economy, appeared to be rising across a majority of districts,

led by increases in non-auto retail sales and tourism, said the report.

According

to the report, employment in most districts maintained a modest to

moderate pace of expansion, while Atlanta and St. Louis districts noted

flat employment levels.

The report showed that labor markets tightened even more for both low and high skilled positions.

Board

of Governors of the Federal Reserve System member Lael Brainard said on

Tuesday that she would want to assess the inflation process closely

before making a determination on further interest rate hikes.

However, the tight labor market did not push too much

upward pressures on wages, which continued to grow at a moderate to

moderate pace in most districts.

Prices continued to

rise modestly in the majority of districts and a few districts noted

that price pressures had eased slightly according to the report.

Fed

chair Janet Yellen said on Wednesday that the central bank will

continue to raise interest rates gradually and start to shrink its

balance sheet this year, while monitoring inflation closely.