Fed sees moderate inflation as tight job market boosts wages

Washington

A TIGHT US labour market was helping lift wages across most of the country through late February and contributing to "moderate inflation" in most areas, a Federal Reserve survey showed.

The central bank's Beige Book economic report, based on anecdotal information collected by the 12 regional Fed banks through Feb 26, showed that the nation's "modest to moderate" expansion was spreading the benefits of higher pay more widely. The survey also contained evidence that a pickup in inflation was more broadly based.