Fed Survey Finds Moderate Expansion

The economy is expanding moderately in much of the nation, with prices remaining stable despite tighter labor markets, a Federal Reserve survey shows.

“Economic activity generally expanded at a moderate rate in many districts in June and July, although several reported that growth was more brisk,” a summary of the survey of regional business conditions said.

“Labor markets tightened further, but only scattered wage pressures were noted,” according to the survey released Wednesday. “Prices for most goods were stable, although reports indicated that lumber and some agricultural prices rose.”

Many of the survey participants said competition made raising prices impossible.

The survey, known as the beige book because of the color of its cover, will be used by central bank policy-makers when they meet Aug. 19 to consider monetary policy.

The Federal Open Market Committee last raised short-term interest rates in March, when it nudged them up a quarter of a percentage point to 5.5 percent.