Companies in the US saw modest growth in late 2021, according to the Fed’s Beige Book

The US economy expanded at a modest rate through the end of last year, and companies said growth continues to be limited by supply chain disruptions and labor shortages, while prices exhibited a “solid growth”Showed a survey conducted by the Federal Reserve (Fed).

“Although optimism remained high overall, several districts cited company reports that growth expectations in the coming months have cooled somewhat over the past few weeks.“, Said the central bank in its latest report on the economy called”Beige Book”, Which is compiled from anecdotal evidence derived from business contacts across the country.

The report also noted “a sharp setback”In leisure travel, hotel occupancy and restaurant customers as the number of new coronavirus cases increased.

With inflation persistently more than double its flexible annual target of 2%, the Fed It is already taking measures to control it and has pointed out that the era of very expansionary monetary policy, in force since the beginning of the coronavirus pandemic, has effectively ended, even as the omicron variant causes a record wave of infections throughout the country and in everyone.

The president of the FedJerome Powell told the Senate Banking Committee on Tuesday, during his confirmation hearing for a second term as head of the central bank, that the economy should weather the current surge in COVID-19 with only shocks “transient”And that it was ready for the beginning of a tighter monetary policy.

The Fed began in November to reduce its monthly purchases of Treasuries and mortgage-backed securities, introduced to help prop up the economy during the COVID-19 pandemic, and is now set to end the program entirely by mid-March. clearing the way for interest rate hikes at its March 15-16 monetary policy meeting.

Labor Department data released Wednesday showed consumer prices rose 7% year-on-year in December, the fastest rate of advance since 1982, although central bank officials and private economists see it near the peak.