Fed Beige Book Shows Most Districts With Little to No Growth

Economic Activity & Labor Market - Most of the 12 Federal Reserve districts reported little or no change in economic activity overall [1] - 11 of the 12 Federal Reserve districts describe little or no net change in overall employment levels [2] - Real wage growth seems dismal, weighing on consumer spending and activity [1][4][5] Inflation & Prices - Price growth is characterized as moderate or modest in ten of the 12 districts [3] - Strong input price growth is outpacing moderate selling prices, impacting the inflation landscape [3] - Tariffs are creating price pressures, but weakening real wages are causing demand to retract [4][5] Monetary Policy & Fed Decision - The market widely expects a 25 basis point cut at the upcoming Fed meeting [6] - Economic uncertainty and tariffs are frequently cited as negative factors [5][13] - Weak local conditions in Kansas City, presided over by a hawkish member, could influence voting for a rate cut [7][8][9][10] - A new Fed board member could advocate for a rate cut, potentially influencing discussions [16] - There is enough evidence to warrant a cut, but the timing (September vs later) is uncertain [14][15]