U.S. Economy Grows Moderately Amid High Inflation

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U.S. Economy Grows Moderately Amid High Inflation
21 Apr 2022
min read

News Synopsis

The Federal Reserve said that the US economy grew at a slower pace in early spring as the Covid-19 case diminished, high inflation swept the entire US economy, and the war in Ukraine created new economic uncertainty. 

A report containing information gathered by April 11 said the tight labor market continued to drive strong wage growth. Workers cited inflation as the reason for the rise in wages. A food service worker told the Fed that relatively low wages, at her company was "the main reason for recent union efforts."

Companies in the service sector have reported strong demand. Southeastern companies said this spring holiday activity was booming, and West Coast companies said the revival of professional events and conventions was slow.

An airline in San Francisco’s Fed district said it expects fares to rise in the coming years due to rising fuel costs. The report said oil and gas prices soared after Russia invaded Ukraine.

A mid-Atlantic manufacturer said some European suppliers were closed due to soaring fuel costs. Other companies have said they are concerned that the rise of Covid-19 in China could exacerbate supply chain disruptions.

TWN In-Focus