The U.S. economy grew at a moderate pace in early spring as COVID-19 cases declined and high inflation rippled throughout the economy.
In its latest report, the Federal Reserve said the tight labor market continued to fuel strong wage growth.
Inflation continues to be a concern, the Fed reported, with demand still far outstripping the supply of everything from labor to goods, not helped by recent lockdowns in China to restrict the spread of the pandemic and a spike in food and energy costs due to Russia's invasion of Ukraine.
The Fed raised interest rates in March for the first time in three years, but they remain low. The Fed will likely raise rates by a half percentage point at its next policy meeting in early May and continue with a series of hikes this year designed to make a hefty dent in high inflation. Learn more.