The Fed released its Beige Book on Wednesday. The central bank said that the U.S. economic activity expanded in 9 of 12 districts from late-November through early-January.

The Districts of Cleveland's, Richmond's, Chicago's, St. Louis', Minneapolis' and Dallas' activity grew modestly, Atlanta's and San Francisco's economy expanded moderately, the New York District's and the Kansas City District's growth was steady, while Boston's activity was "described as upbeat".

The growth outlook remained mostly positive, the Fed said.

Consumer spending was "slight to moderate in most Districts".

The manufacturing sectors were weak in the most districts as the strong dollar weighed on demand, while the labour market continued to improve.

Overall price pressures were minimal in nearly all districts, the Fed noted.