The Federal Reserve's brown paper also points out that the economy seems to be growing at a moderate to moderate pace. The Brown Paper is a report on the economic situation of the United States prepared by the Federal Reserve on the basis of the economic situation collected during discussions with business representatives in 12 Federal Reserve regions in the weeks ending November 26.
Despite concerns expressed by many companies about the impact of the trade war between China and the United States, companies continue to recruit staff and report increased benefits and salaries to compete for increasingly scarce labor resources.
The Federal Reserve pointed out that labor market supply in many industries has tightened, and wage growth "tends to moderate to moderate pace of high-end".
According to the Brown Paper, in the Federal Reserve of Minneapolis, "labor supply is generally seen as the biggest obstacle to short-term growth."
After the release of the brown paper, the dollar maintained a slight increase.
It is widely expected that the Federal Reserve will raise interest rates after its policy meeting on December 18-19. Policymakers have said that without further raising borrowing costs, a strong U.S. economy could trigger higher inflation.
Meanwhile, Federal Reserve Chairman Powell has hinted that the Fed's three-year tightening cycle is drawing to a close, and Fed officials are looking for signs that the slowdown in global economic growth and the Sino-US trade war may put pressure on the U.S. economy.
The brown paper highlights the growing risks that Fed officials are beginning to mention more frequently, and how long the current Fed officials are planning to increase interest rates.
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