By Howard Schneider and Ann Saphir
WASHINGTON, Jun 2 (Reuters) – The United States’ recovery accelerated in recent weeks even as a long list of supply chain problems, hiring difficulties and rising prices swept across the country, the Fed said. Federal in its latest review of economic conditions.
Growth was “somewhat faster” from the beginning to the end of May, the Fed reported Wednesday in its Beige Book summary of economic reports, and officials noted “the positive effects on the economy of rising vaccination rates. and the relaxation of social distancing measures “.
But getting a $ 20 trillion economy back on track posed its own challenges, Fed officials reported according to contacts in its 12 regions.
Home builders were unable to keep up with demand, manufacturers faced delays in delivering the material needed to finish products, and “it remained difficult for many companies to hire new workers, especially for hours with low wages, truck drivers and skilled tradesmen.” .
Also, prices were rising and are likely to continue to do so for now, according to the Fed.
“Moving forward, the contacts anticipate facing cost increases and charging higher prices in the coming months,” the Fed said.
The Beige Book will help frame the central bank’s next monetary policy meeting in June, as officials move toward a debate on how and when to start withdrawing monthly purchases of $ 120 billion bonds and interest rates. interest near zero established to combat the economic consequences of the pandemic.
Fed officials say they will likely struggle for several months to get a clear reading of an economy that is reborn, but faces some hurdles as it accelerates.
(Reporting by Howard Schneider and Ann Saphir, Edited in Spanish by Manuel Farías)