THE US economy is expanding at a moderate rate, with few indications of major price increases, the US Federal Reserve said yesterday.

But the Fed, the US central bank, in its latest so called Beige Book assessment said that none of its 12 regional branches indicated inflationary pressures are subsiding and at least one report noted "that price increases are expected to intensify".

Price increases are a leading indicator of inflationary pressures and the Beige Book serves as a guide for Fed policy makers on the Open Market Committee, which is to convene on September 24th to determine whether or not US interest rates should be increased.