Fed regions see growth after weather shock

YESTERDAY’S Federal Reserve analysis noted an improvement in business conditions since the end of severe weather earlier this year.

According to the Fed’s beige book, most regions reported that the economic climate improved between February and early April.

Fed chair Janet Yellen reinforced the message that policy would remain loose in a speech yesterday, saying low inflation now posed more of a challenge to the US now than the threat of rising prices.

“The federal open market committee is well aware that inflation could also threaten to rise substantially above two per cent percent. At present, I rate the chances of this happening as significantly below the chances of inflation persisting below two per cent,” she added, speaking to a New York audience.