Half of Fed Districts Report Rising Price Pressures

The Federal Reserve’s Beige Book reported that price pressures are intensifying in parts of the country, with higher energy costs—particularly oil and diesel—joining tariffs, commodities and insurance as sources of rising business expenses. Three of the 12 districts described overall price growth as robust, while several others reported mounting or already elevated input-cost pressures; businesses are passing some costs through supply chains, though increasingly price-sensitive consumers are limiting that ability. Economic activity was broadly subdued: only two districts reported moderate growth, with manufacturing providing relative support and the outlook leaning toward slight growth amid persistent uncertainty. Employment changed little in most districts, with hiring and layoffs both muted; some firms also said AI investment was affecting employment.