Economic activity expanded across all 12 Federal Reserve districts in June, according to the central bank's Beige Book report, published on Wednesday.
The report said the pace of growth in these districts since the last Beige Book survey in May ranged from slight to moderate and most districts expected modest to moderate growth in the months ahead.
Consumer spending rose across the majority of regions thanks to gains in retail sales and tourism, although several areas reported softening in sales of motor vehicles.
Manufacturing and services activity continued to grow and construction activity expanded or was flat in most districts.
Labour markets tightened and wages increased at a modest to moderate pace, with companies surveyed reporting rising wage pressures among both low- and high-skilled positions.
Low level inflation, however, looked likely to cause the Fed further concerns, as "a few districts noted that price pressures had eased slightly". The majority reported prices rising modestly.
Earlier, chair Janet Yellen struck a more dovish tone than Fed-watchers have been used to in recent weeks when she said inflation remained an uncertainty.
Speaking in front of Congress, Yellen said: "Considerable uncertainty always attends the economic outlook. There is, for example, uncertainty about when, and how much, inflation will respond to tightening resource utilisation."
The remarks appeared to indicate the Fed will continue its path of gradual rate increases, but cast some doubt on the timing of the next hike - expected by many in September.
Luke Bartholomew, investment strategist at Aberdeen Asset Management, said: "Yellen’s statement today reveals that the Fed isn’t as sure about inflation as they led us to believe.
He added: "If the Fed really is faltering about inflation then it makes another rate hike this year slightly less likely."
Markets appeared to be questioning the Fed's rate path also as the dollar slid 0.3% against the pound and lost 0.7% against Japan's yen. Stocks were buoyant, with the S&P 500 up 0.8% and the Dow Jones Industrial Average climbing 0.6%.
New Fed chair likely?
This week's Congressional testimony could be Yellen's last if reports are true that President Trump has it in mind to nominate a new chair when her term is up next February.
The Politico team at Reuters claim that Trump is ready to nominate Gary Cohn, currently director of the National Economic Council and formerly president of Goldman Sachs.