According to the Federal Reserve, the economy is expanding at a "modest to moderate pace." The Fed claims that retailers and manufacturers are seeing higher costs that are being passed on to consumers, and that housing continues to struggle. Tell us something we don’t already know!
Both commercial and residential construction continues to be one of the slower segments of the economy, while manufacturers, retailers and financial firms reported slight growth.
Meanwhile, it's still tough to get credit, and in some regions, banks are actually tightening their standards.
The Fed reported little evidence of wages increasing in most of its districts.
The report echoes recent comments from Fed Chairman Ben Bernanke, who acknowledges rising prices are impacting the average American, but not yet at a level that will derail the recovery.