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Fed Report Hints at Small Signs of Economic Recovery

The Federal Reserve says business and consumer confidence has risen slightly since the war in Iraq, particularly in Kansas City, Dallas, New York and Minneapolis. But it also warns that much of the country is still struggling with "sluggish, subpar or subdued" economic growth. The Fed will use the data from its survey of economic conditions when it sets interest rates in late June. Hear NPR's Scott Horsley.

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Scott Horsley is NPR's Chief Economics Correspondent. He reports on ups and downs in the national economy as well as fault lines between booming and busting communities.