Federal Reserve Beige Book: Economy Grows Slightly, Inflation Upside Risks May Increase

The latest Fed Beige Book shows that U.S. economic activity increased slightly from the end of May to the beginning of July, employment rose slightly, wages continued to rise moderately, manufacturing layoffs increased slightly, but overall layoffs were still limited. All regions generally face rising cost pressures for raw materials and insurance driven by tariffs, and some companies have passed some of the costs on to consumers, which may increase the risk of rising inflation in the coming months. The overall outlook is neutral to slightly pessimistic, with only a few regions expecting economic activity to increase. [Wu Blockchain]