Federal Reserve Beige Book: Economy Moderately Rebounding, Employment Stable, Tariff Costs Shifting to Consumers According to Jin10, the Federal Reserve's Beige Book shows that in the 12 Federal Reserve districts, overall economic activity grew at a slight to moderate pace in 8 districts, remained unchanged in 3 districts, and declined moderately in 1 district. This marks an improvement compared to the past three reporting periods, during which most districts reported little change in economic activity. The Beige Book indicates a slightly optimistic outlook for future activity, with most districts expecting slight to moderate growth in the coming months. The Beige Book also reveals that during this period, most banks reported slight to moderate growth in consumer spending, mainly driven by the holiday shopping season. Recent employment conditions remained largely unchanged, with 8 out of 12 districts reporting no changes in hiring activity. Prices grew at a moderate pace in most districts, with only two districts reporting slight price increases. Cost pressures caused by tariffs remain a common issue across all districts. As pre-tariff inventories are depleted, businesses are passing on additional costs to consumers, signaling emerging inflationary pressures.