Companies in the United States "reported that inflationary pressures were... contributing to higher wages, and that higher wages were doing little to alleviate widespread job vacancies," the Federal Reserve revealed in its April Beige Book released on Wednesday.
The pace at which the overall economic and employment growth unfolded since mid-February was "moderate," according to the central bank. Demand for labor remained mostly "strong," but "hiring was held back by the overall lack of available workers."
Companies passed their input costs on to their consumers, "for example, via fuel surcharges for freight and airline fares," causing inflationary pressures to stay "strong" and a majority of American firms said they expect issues related to inflation to remain in place "over the coming months."
"Outlooks for future growth were clouded by the uncertainty created by recent geopolitical developments and rising prices," the Fed warned.
