US Economy Shows Modest Growth Amid Persistent Inflation Pressures
According to the Federal Reserve's latest Beige Book, US economic activity increased modestly in recent weeks. The report, based on information collected through August 24 from the Fed's 12 regional districts, shows that employment edged higher and prices continued to rise moderately.
Price increases slowed in three Fed districts, accelerated in one, and were unchanged in eight. Businesses across several regions reported higher costs for energy, transportation, and raw materials, while tariff-related pressures and rising healthcare and insurance costs remained concerns.
The report also highlighted the growing impact of artificial intelligence, with strong demand for data centers and defense-related construction offsetting weaker activity elsewhere.
Fed policymakers remain divided over whether inflation has eased enough to justify keeping rates unchanged. Financial markets were pricing about a 65% probability of a rate hike at the September meeting, compared with a 35% chance of a hold.