Most regions also expect the middling expansion to continue in the coming months, but businesses said they continue to feel pressure to offer higher pay and benefits to attract qualified workers, according to the Fed's report on economic conditions.
"Maintaining the production of American steel is extremely important to our national security and our defence industrial base. Steel is critical to both our economy and our military. This is not an area where we can afford to become dependent on foreign countries," Trump said as he signed a memorandum formalising the probe.
Non-farm payrolls increased by 98,000 jobs last month as the retail sector shed employment for a second straight month, the Labor Department said on Friday, the fewest since last May.
It would make sense if the US economy continues to grow for the Federal Reserve to begin trimming its USD 4.5 trillion balance sheet towards the end of this year, unwinding extraordinary stimulus deployed during the crisis, a Fed policymaker said on Thursday.
Cleveland Fed President Loretta Mester, at a forum in Singapore, did not comment specifically on interest rates. However she has dissented in the past in favor of quicker rate hikes and on Monday urged the Fed to focus on returning to a more normal policy footing, including trimming its USD4.5-trillion bond portfolio.
Christine Lagarde said Trump's plans for additional investment in US infrastructure and his likely tax reforms will boost the American economy.
"If the Fed does move in March, we could see as many as four hikes in 2017, and as long as data remains supportive, very likely three hikes," Rick Rieder said in a note.
The first estimate of Gross Domestic Product showed growth of 1.9 percent in the September-December period, well below the 3.5 percent pace of the third quarter, and short of the consensus estimate by analysts of 2.2 percent.
"Waiting too long to begin moving toward the neutral rate could risk a nasty surprise down the road - either too much inflation, financial instability, or both," Yellen told the Commonwealth Club of California in San Francisco.
The Federal Reserve says its survey of economic conditions around the country found that growth was modest or moderate in 10 of its 12 districts. That is an improvement from seven in the previous report. Growth was slight in the Cleveland district and largely unchanged in New York.
The three-pronged catalyst of lower taxes, less regulation and more domestic spending could push gross domestic product well above the trend of the past eight years, the noted author said.
The optimism around US economy's growth and a strengthening dollar are signs that IT companies are going to give out a stellar performance in the long-term, says Mahesh Nandurkar, India Strategist at CLSA.
The Budget is going to be the biggest market trigger for the next 3-6 months, says V Srivatsa, EVP and Fund Manager at UTI MF.
Willem H Buiter, Global Chief Economist, Citi is of the belief that the demonetisation process in India will only have a minor impact on growth and will not alter the underlying India growth story.
The momentum is with the developed markets and China still remains the biggest risk to the global economy, said Ruchir Sharma, Author & EM Investor.
About India's demonetisation, Martin Wolf of Financial Times says it is a brutal tool and its implementation was not very good. He is puzzled by the government's move. The move was carried out without printing new notes to replace the old , says Wolf.
Jan Dehn, Head, Research at Ashmore Investment Management says there is a big risk of inflation in the country; especially due US President-elect Donald Trump's policies which pose inflation risks.
The US economy continues to expand nationwide with only slight upward price pressures despite reports of tightening labor markets and higher wages, the Federal Reserve's Beige Book survey said today.
Former Federal Reserve Chairman Alan Greenspan told CNBC on Thursday the political structure has been in chaos for years, and fixing the economy will take tough political judgments.
Average hourly earnings also saw their strongest gains in seven years, rising 2.8 percent to USD 25.92.
The third-quarter gross domestic product, the broadest measure of economic health, was double the 1.4 percent pace in the second quarter, the Commerce Department reported.
Gross domestic product increased at a 2.9 percent annual rate after rising at a 1.4 percent pace in the second quarter, the Commerce Department said on Friday.
Lacker, who is not a voting member of the US central bank's rate-setting committee this year, said he still favours raising rates sooner than later and that the Fed's last policy meeting in July would have been a "good time" to tighten policy.
Christine Lagarde, the IMF managing director, said that as of 2016, global economic growth had stagnated for five years below the 3.7 percent average that prevailed between 1990 and 2007.