Sept 6 Reuters U.S. economic growth was modest amid a cooling labor market and slowing inflation pressures in July and August, a Federal Reserve report published on Wednesday showed, buttressing expectations that the central bank was either done, or close to being done, with interest rate increases.

Most Districts reported price growth slowed overall, the Fed said in its latest Beige Book summary of surveys and interviews conducted across its 12 districts through Aug. 28. It added that nearly all districts indicated businesses renewed their previously unfulfilled expectations that wage growth will slow broadly in the near term.

The U.S. central bank is widely expected to leave its benchmark overnight interest rate in the current 5.255.50 range at the end of its Sept. 1920 policy meeting, while leaving open the door to a final quarterpercentagepoint hike before the end of the year.

Financial markets are pricing about even odds that the Fed39;s ratehike campaign, begun 18 months ago, is over.

Fed officials are, however, keeping their options open. They believe that the 5.25 percentage points of rate hikes delivered since March 2022 are slowing the economy, capping job growth and most importantly slowing inflation, which soared to a 40year high last year.

Data since the last Fed rate hike six weeks ago has tended to support that view, with the economy adding an average of 150,000 jobs per month over the last three months, down sharply from the prior three months….