Fed Report Finds Almost Ideal Mix

Prices in the U.S. are “stable,” signs of wage pressures are “infrequent” and growth remains moderate to strong, the Federal Reserve said - an almost ideal economic mix that could help push yields on U.S. Treasury bonds lower.

“Prices remain stable as competitive factors and resistance from buyers are making it difficult for producers to pass on any cost increases,” the Fed said in its regular report on regional economic activity.

“Most districts characterized early autumn economic activity as moderate to strong in most areas,” the report said. “Retail sales in most districts in September were weaker than anticipated, with some pickup in October. Automobiles sales were mostly slower.”

Also, “manufacturing activity accelerated or remained at high levels,” the report said.