Fed's Beige Book Shows Price Pressures May Be Intensifying

By Jessica Coacci

U.S. economic activity grew at a slight to moderate pace across most Federal Reserve districts in recent weeks while price pressures grew in some districts, according to the Fed's Beige Book report.

The Fed's Beige Book, which gathers anecdotal information about current economic conditions across the 12 Federal Reserve districts, comes before the committee's October meeting on interest rates. Some Fed officials have signaled leaving rates unchanged this month, prior to Wednesday's firm consumer price index report.

Manufacturing showed some signs of strength, while growth in other sectors lagged. Broad-based growth in manufacturing led the moderate growth reported in the Dallas district, the report said. Meanwhile, another six districts reported modest to moderate growth from their manufacturing firms. The remaining five districts noted little or no manufacturing growth.

As consumer inflation remains above the Fed's target, officials at the central bank monitor whether businesses are able to pass higher costs onto consumers. The Beige Book said consumer-facing firms noted tighter profit margins as price-sensitive customers continue to resist higher prices.

Meanwhile, price pressures rose in some districts. Four districts reported that the pace of price increases picked up since the prior period. Three districts characterized overall price growth as robust, while eight noted that growth was moderate. Three of the eight noted that input price pressures were intensifying, the report said.

Uncertainty was also shared in business sentiment. Firms in several districts cited persistent uncertainty around energy and tariffs and expected that prices will increase further in the coming months.

The report also indicated signs of a low-hire, low-fire labor market. Most districts described little or no net change in overall employment levels. Five districts reported that some firms had either reduced staffing levels, delayed hiring, or anticipated less job creation after increasing productivity by investing in artificial intelligence.

Write to Jessica Coacci at jessica.coacci@wsj.com

(END) Dow Jones Newswires

October 14, 2026 14:56 ET (18:56 GMT)