Top officials of the U.S. central bank say they expect the world’s largest economy to grow at a “moderate” pace in the coming months.
Wednesday’s report from the Federal Reserve says consumer spending and business investment have improved, but the job market and the construction sector still have problems.
Fed officials also warn of “downside risks” to the economy from continued strains in global financial markets.
The central bank kept interest rates steady at their record low levels after noting that inflation has eased recently. If inflation becomes a threat, the Fed will probably raise interest rates to cool the economy and restrain prices. But officials do not want to do that too soon because the current low interest rates are intended to help boost growth in the U.S. economy.
A separate report earlier Wednesday said U.S. private sector payrolls rose 110,000 in October, with much of the gain in the services sector of the economy.
The information comes from ADP, a company that processes millions of paychecks for businesses across the nation.
The data may be a preview of Friday’s closely-watched report on the U.S. unemployment rate, which many experts predict will stay steady at a relatively high 9.1 percent. Economists surveyed by news organizations say the U.S. economy will probably also see a net gain of 95,000 jobs.