The central bank didn't raise rates on Wednesday but reiterated that "further gradual increases" would be consistent with economic conditions.
Some consumer goods companies are increasing prices, but there are signs of renewed price sensitivity among buyers, says Korn Ferry's Craig Rowley.
“The job market is booming, impacted by the deficit-financed tax cuts and increases in government spending.”
Strong discretionary spending signals consumer confidence, rising solidly along with several other key economic indicators.
Some economists say the rate will be difficult to sustain in the third quarter. Fed officials forecast yearlong GDP growth of under 3%.
When politicians start chiming in on monetary policy, they actually can torpedo sensible policy: opinion.
The median sales price hit a new high in June, however, as the U.S. market for entry-level homes remained very competitive.
The positive industrial numbers support the notion that the U.S. economy grew at a robust pace in the April-to-June period.
The trend of steadily building inflation pressures could prompt the Federal Reserve to continue raising interest rates, analysts said.
The biggest annual gain in the PPI since November 2011 suggests inflationary pressures are increasing amid a fast-growing economy.