Consumer spending also continued to pick up, the report said, with the increase reflecting strong vehicle sales and some improvements in tourism and retail sectors. Fed Chair Jerome Powell recently announced a shift with regard to the price-stability side of the central bank's dual mandate and the adoption of a "flexible form of average inflation targeting." Powell's comments last Thursday were seen as an indication the Fed will leave interest rates at near-zero levels for the foreseeable future even if there is an acceleration in the pace of inflation.