The Federal Reserve's Beige Book: The U.S. economy is expanding moderately, but inflation and policy uncertainty remain risks.

PANews, March 5th - According to Zhitong Finance, the latest Beige Book released by the Federal Reserve shows that the US economy remained generally stable at the beginning of 2026, but persistent inflation, a slowing job market, and policy uncertainty are posing new risks. The report indicates that the US economy showed relatively solid fundamentals at the beginning of the year, but businesses remained cautious about the future outlook. Businesses surveyed by the New York Fed reported that consumer spending had rebounded somewhat, but many households still reduced large-scale purchases due to uncertainty. Regarding employment, the Beige Book shows that employment levels were generally stable in most districts at the beginning of the year, but the labor market lacked significant dynamism. Inflation remains a common concern for businesses. The Beige Book shows that all 12 Fed districts reported price increases, with eight districts experiencing a moderate rise in inflation and four experiencing a slight increase. Businesses generally cited rising costs for insurance, energy, and raw materials, while tariffs were also pushing up production costs.

The report was compiled by 12 regional Federal Reserve Banks based on surveys conducted prior to February 23, and therefore does not yet reflect the impact of some recent major events, such as the U.S. Supreme Court's ruling overturning some tariff policies and the latest outbreak of conflict in the Middle East.