Federal Reserve Beige Book: U.S. Economy Expanding Moderately, Inflation and Policy Uncertainty Remain Risks

PANews reports on March 5th that, according to the latest Beige Book from the Federal Reserve, the U.S. economy remains stable overall in early 2026, but persistent inflation, a slowing job market, and policy uncertainties are creating new risks. The report indicates that the U.S. economy showed solid fundamentals at the start of the year, but businesses remain cautious about future prospects. Companies surveyed by the New York Fed said consumer spending has rebounded, but many households are still reducing large purchases due to uncertainty. Regarding employment, the Beige Book shows that most regions experienced stable hiring levels in early 2026, but the labor market lacks significant vitality. Inflation remains a common concern among businesses. The Beige Book reports that all 12 Federal Reserve districts experienced price increases, with 8 districts seeing moderate inflation and 4 districts experiencing slight increases. Businesses generally cited rising costs for insurance, energy, and raw materials, while tariffs are also pushing up production costs.

This report was compiled by 12 regional Federal Reserve banks based on surveys conducted before February 23, and thus does not reflect recent major events, such as the U.S. Supreme Court overturning some tariff policies or the latest outbreak of conflict in the Middle East.