US economy's rebound sets up test of US Federal Reserve's new pledge

By Ann Saphir and Jonnelle Marte (Reuters) - The stronger-than-expected U.S. economic rebound from coronavirus lows could set up an early test for the Federal Reserve's new pledge to keep interest rates near zero and its increased tolerance for inflation.

A compilation of surveys and interviews conducted in September and early October by the Fed's 12 regional banks shows the economy recovering at a "slight to modest pace" as consumers bought homes and increased spending. Indeed the U.S. economy probably grew.....

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