Economic activity increased at a "slight to moderate" pace for ten of the twelve Federal Reserve Districts, while one District reported a slight decline and one reported no change, according to the latest Fed Beige Book.
Thejust released Beige Book- prepared at the Federal Reserve Bank of Kansas City based on information collected on or before May 27, 2026, and is the second one to capture the effect of the war on the US economy - found that consumer spending remained mixed across districts and increasingly bifurcated across income groups amid affordability pressures,the latest confirmation of the K-shaped economy.
In keeping with an increasingly fractured economy, the anecdotes highlighted moments of weakness that indicated far more weakness that the headline assessment indicated, to wit:
In terms of labor markets, the Beige Book said the following:
As for prices, they "increased at a moderate to strong pace" overall, with most Districts reporting higher inflation than the previous report.
Finally, here are the main highlights by Fed districts
Source: ZeroHedge News
