Federal Reserve Beige Book: Economy Moderately Rebounding, Employment Stable, Tariff Costs Begin to Be Passed on to Consumers

PANews, January 15—According to Jinse Finance, the Federal Reserve's Beige Book shows that in 8 out of the 12 Federal Reserve districts, overall economic activity grew at a slight to moderate pace, 3 districts reported no change, and 1 district reported a moderate decline. This marks an improvement compared to the previous three reporting periods, during which most districts reported little change in economic activity. The Beige Book indicates a slightly optimistic outlook for future activity, with most districts expecting small to moderate growth in the coming months. The Beige Book also notes that in this cycle, most banks reported slight to moderate growth in consumer spending, mainly due to the holiday shopping season; recent employment conditions have remained largely unchanged, with 8 out of 12 districts reporting no change in hiring activity; and in nearly all districts, prices grew at a moderate pace, with only two districts reporting a slight increase in prices. Cost pressures caused by tariffs are a widespread issue across all districts. As pre-tariff inventories are depleted, businesses are passing on additional costs to consumers, and inflationary pressures are emerging.