Fed Beige Book: High oil prices hit all 12 districts, businesses expect further price increases

BlockBeats news, October 15: The Federal Reserve's latest Beige Book shows that the U.S. economy has generally continued to grow, but growth is lackluster in most industries. Among the 12 Federal Reserve districts, two reported moderate growth, three reported slight growth, four reported modest growth, and three were essentially flat. Manufacturing performed relatively strongly, but consumer spending changed little in most districts, with more than half reporting that consumption was mainly driven by higher-income households.

On inflation, three districts reported strong price increases, eight reported moderate increases, and four said the pace of price increases had accelerated compared with the previous period. All districts were affected by rising oil prices, with high diesel prices and fuel surcharges pushing costs along the supply chain, while tariffs, insurance, and other commodity prices also continued to exert pressure. Some businesses expect prices to rise further in the coming months as existing contracts expire and hedging and delivery contracts are renegotiated.

On employment, most districts reported little change in employment levels, but shortages of professional and skilled workers persisted. Five districts said that some businesses, after investing in artificial intelligence to improve productivity, had reduced staff through attrition, delayed hiring, or expected to reduce new positions. At the same time, rising inflation and benefit costs are pushing employees to demand higher wages. The Beige Book noted that most businesses remain positive about the economic outlook for the coming months, but generally expect only limited growth and continue to be affected by energy prices, tariffs, and other uncertainties.