point increases have followed at every Open Market Committee meeting since then. On Tuesday, it cited a mixed bag of economic news, including "robust" growth in productivity, a "gradually" improving labour market and a slowdown in spending growth due in part to higher energy prices. Consumer spending accounts for two-thirds of U.S. economic activity. Higher energy costs were cited in a report last week by the U.S. government that showed a far slower rate of growth in gross domestic product than had been anticipated. The 3.1-per-cent rate was the slowest since the first quarter of 2003. But the Fed gave good marks to the U.S. economy Tuesday: "The committee believes that, even after this action, the stance of monetary policy remains accommodative and, coupled with robust underlying growth in productivity, is providing ongoing support to economic activity." It also said, however, "Pressures on inflation have picked up in recent months, and pricing power is more evident.
