Federal Reserve Beige Book Indicates Modest Economic Growth Across U.S.

According to PANews, the Federal Reserve's Beige Book reveals that economic activity in eight out of the twelve Federal Reserve districts experienced slight to moderate growth. Three districts reported no change, while one district noted a moderate decline. This marks an improvement compared to the previous three reporting periods, where most districts reported little change in economic activity. The Beige Book indicates a slightly optimistic outlook for future activities, with most districts anticipating modest to moderate growth in the coming months. Consumer spending saw slight to moderate growth in most banks, largely due to the holiday shopping season. Employment conditions remained largely unchanged, with eight districts reporting no change in hiring activities. Prices grew at a moderate pace in most districts, with only two districts reporting slight price increases. Tariff-induced cost pressures were a common issue across all districts. As pre-tariff inventories deplete, businesses are passing additional costs onto consumers, hinting at emerging inflationary pressures.