Fed Beige Book: Higher oil prices hit every district, AI curbs hiring
The Federal Reserve’s Beige Book shows sluggish growth and flat employment. Price growth picked up in four districts, and firms in five districts are holding back on jobs after investing in AI.
Symbolic image · Photo: Federalreserve / Wikimedia Commons, Public domain (cropped and resized)
The U.S. economy is growing only modestly while price pressures are building, according to the Federal Reserve’s Beige Book released Wednesday, which compiles reports from the central bank’s 12 regional districts. Only two districts reported moderate growth, most reported slight or modest gains and three saw no significant change. Consumer spending was little changed in most districts and in more than half was driven mainly by high-income households.
Three districts described overall price growth as robust and eight as moderate, while four said the pace had picked up. “Higher oil prices permeated all District reports,” the report said. Firms cited elevated diesel costs, with fuel surcharges being passed along supply chains. Tariffs, other commodities and insurance also kept up price pressure, and uncertainty over tariffs and energy remained high.
Most districts reported little or no net change in overall employment, though shortages persisted for specialized, technical and skilled trade workers. In five districts, some firms said they had reduced staffing, delayed hiring or expected less job creation after investing in artificial intelligence to raise productivity. The report came on the same day data showed inflation accelerating to 3.7% in September.