Investing.com – The outlook for economic growth picked up in recent weeks amid expectations for the labor market to remain steady over the next year, but concerns that potential tariffs could reignite inflation began to emerge, according to the Federal Reserve’s Beige Book released Wednesday.

“Though growth in economic activity was generally small, expectations for growth rose moderately across most geographies and sectors,” the Fed said in its Beige Book economic report, based on anecdotal information collected by the Fed’s 12 reserve banks through Nov. 22.

The sanguine outlook on growth comes as “business contacts expressed optimism that demand will rise in coming months. Consumer spending was generally stable,” the report showed. 

The labor market, meanwhile, is expected to remain steady or “rise slightly” over the next year, the Fed’s beige book showed. But the steady labor market isn’t likely to fuel wage growth. 

“Wage growth softened to a modest pace across most Districts, as did expectations for wage growth in coming months,” it added.

Inflation, which has returend to spotlight amid fears that the slowing pace of price pressures could be stalling, “rose only at a modest pace across Federal Reserve District,” the Fed’s biege book showed.

President-elect Donald Trump recently threaten to impose 25% tariffs on on all goods from Canada and Mexico unless the countries stemmed the flow of illegal drugs, and illegal migrants crossing the border.