Fed Sees Modest Economic Growth Amid ‘Slight’ Inflation

The U.S. economy grew at a modest pace in July and August as a strong labor market failed to put much upward pressure on wages and prices, a Federal Reserve report showed.

“In general, expectations of wage growth for the coming months were modest” and price increases “remained slight overall,” according to the Fed’s latest Beige Book release, a survey of business contacts published Wednesday in Washington.