The Federal Reserve’s Beige Book reported that US economic activity expanded at a slight to moderate pace in recent weeks, with employment largely steady across regions. Wage gains were modest, though some sectors saw upward pressure due to competition for skilled labor.
Prices continued to rise at a moderate rate, driven in part by Middle East tensions and tariffs, while consumers showed increasing sensitivity to higher costs. Inflation expectations varied by region, with some anticipating steady price growth and others expecting easing due to lower fuel costs.
Sectoral activity was mixed but generally resilient, with strength in areas such as tourism, AI-related industries, and housing demand. Businesses remain cautiously optimistic about continued expansion, though uncertainty around energy prices and broader cost pressures persists.