Economic Activity: A Mixed Bag Across Districts

The Federal Reserve's latest Beige Book, released on Wednesday, paints a picture of an economy in stasis, with activity described as "little changed." The report highlights a divide among the districts: five noted "slight growth," three remained "relatively unchanged," and four experienced "slight to modest declines." The Fed pointed to increasing economic uncertainties, particularly around tariffs, as a significant factor worsening the outlook in several districts.

Employment Trends: Slight Variations

Employment figures mirrored the overall economic trend, with most districts reporting conditions as "little changed to up slightly." Specifically, one district enjoyed a "modest increase," four saw a "slight increase," four observed no change, and three faced a "slight decline."

Price Pressures: A Universal Rise

Prices across the board saw an uptick, with six districts reporting "modest" growth and another six noting "moderate" increases. The Fed elaborated, "Most Districts noted that firms expected elevated input cost growth resulting from tariffs. Many firms have already received notices from suppliers that costs would be increasing."