The Federal Reserve's Beige Book indicates a moderate economic recovery, stable employment, and that tariff costs are beginning to be passed on to consumers.

PANews reported on January 15th that, according to Jinshi News, the Federal Reserve's Beige Book showed that overall economic activity in eight of the 12 Federal Reserve districts increased at a slight to moderate pace, three districts reported no change, and one district reported a moderate decline. This is an improvement over the previous three reporting periods, when most districts reported little change in economic activity. The Beige Book indicated a slightly optimistic outlook for future activity, with most districts expecting modest to moderate growth in the coming months. The Beige Book also showed that most banks reported slight to moderate growth in consumer spending this period, primarily due to the holiday shopping season; recent employment conditions remained largely unchanged, with eight of the 12 districts reporting no change in hiring activity; and prices rose at a moderate pace in the vast majority of districts, with only two districts reporting slight price increases. Cost pressures stemming from tariffs were a common problem across all districts. As pre-tariff inventories dwindled, businesses are passing on the additional costs to consumers, and inflationary pressures are emerging.