WASHINGTON (Reuters) - The United States faced increasing inflationary pressures in recent weeks amid slowing economic growth, the Federal Reserve said on Wednesday, as it described conditions in some areas as "grim," "morose" or "bleak."The gloomy Fed report reflected the twin challenges of weak growth and price pressures that limit policy-makers' options going into their next meeting on interest rates on August 5. They are expected to hold benchmark rates steady at 2 percent.
"All reporting districts characterized overall price pressures as elevated or increasing," the Fed said in its Beige Book report on the state of the economy through July 14.
A Fed policy-maker said separately that the central bank must raise rates to curb inflation, but should be of mindful of the shaky state of the economy as it does so.
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