"Most Districts reported price growth slowed overall," the Fed said in its latest "Beige Book" summary of surveys and interviews conducted across its 12 districts through Aug. 28.
It added that "nearly all districts indicated businesses renewed their previously unfulfilled expectations that wage growth will slow broadly in the near term."
Data since the last Fed rate hike six weeks ago has tended to support that view, with the economy adding an average of 150,000 jobs per month over the last three months, down sharply from the prior three months.
Earlier on Wednesday, Boston Fed President Susan Collins also said the central bank has the space to be patient, while acknowledging that inflation pressures, though easing, still remain too high.
Home building was picking up, the Fed said, but building affordable properties is being strained by high financing costs and rising insurance premiums.
Persons:
Christopher Waller, Susan Collins, Collins, Ann Saphir, Andrea Ricci, Paul Simao
Organizations:
Federal, Boston, New, New York Fed, San Francisco Fed, Fed, Thomson
Locations:
U.S, New York