WASHINGTON – The United States (US) economy was expanding at a modest pace in October and early November due to growing consumer spending, the Federal Reserve said Wednesday.
In its latest assessment of business conditions nationwide, the Fed struck a more upbeat tone than it had in its previous report when it worried more about trade tensions and slower global growth.
However, it still noted that the majority of the Fed’s 12 districts were not experiencing growth in manufacturing, which has been hurt by a widening trade war with China.
The Fed report, known as the beige book, will be used when Fed officials meet in mid-December to set interest rate policies. The wide expectation is that the central bank will leave its benchmark rate unchanged after cutting it at its three previous meetings.
Those rate cuts, which followed four rate hikes last year, have given a boost to interest-rate sensitive sectors of the economy such as housing and auto sales.
There are hopes that the United States and China will soon reach agreement on a so-called Phase 1 trade agreement that will keep President Donald Trump from imposing a new round of tariffs on Chinese goods.
The US tariffs have provoked retaliation from China which has hurt American manufacturers and farmers who have seen their markets in China disappear. (AP)
