WASHINGTON (July 14): The US economy continued to expand from mid-May through the end of June but there was little indication that inflation would surge any time soon, the Federal Reserve said on Wednesday.

Wage pressures were "modest to moderate" in most of the central bank's districts and price pressures remained slight, the Fed said in its Beige Book report of anecdotal information collected from business contacts across the country.

Fed policymakers have been spooked by a lack of sustained progress in moving inflation up to the central bank's 2% target as well as by a global growth slowdown. US business investment also has been weak for two straight quarters.

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