Fed Says High Inflation, Geopolitics Are Clouding Outlook

The U.S. economy grew at a moderate pace through mid-April, but rising prices and geopolitical developments created uncertainty and clouded the outlook for future growth, the Federal Reserve said.

“Inflationary pressures remained strong since the last report, with firms continuing to pass swiftly rising input costs through to customers,” the U.S. central bank said in its Beige Book survey released Wednesday. “Outlooks for future growth were clouded by the uncertainty created by recent geopolitical developments and rising prices.”