Fed’s Beige Book points to slowing economic activity in US

In its Beige Book, the Federal Reserve (Fed) pointed to a modest cooling in US economic activity, attributing the slowdown to the impact of imposed tariffs and growing macroeconomic uncertainty.

The report, compiled using data through May 23, showed inflation in the US rose at a moderate pace nationally. However, price growth could accelerate significantly in coming months, with some regions likely to be hit harder than others. Many companies are preparing to pass tariff-related cost increases on to consumers within the next three months.

The US labor market showed stability across most regions, though economic uncertainty continued to restrain hiring activity. Meanwhile, all districts reported softening labor demand alongside moderate wage growth.

As in the previous Beige Book release, US districts continue to assess economic prospects with cautious pessimism, citing persistent uncertainty.