Federal Reserve Beige Book: The economy grew slightly, but the risk of inflation may increase

The latest Beige Book from the Federal Reserve shows that economic activity in the United States slightly increased between late May and early July, with employment numbers seeing a modest rise and wages continuing to grow moderately. Manufacturing layoffs slightly increased, but overall job cuts remained limited. Regions generally faced rising material and insurance costs driven by tariffs, with some businesses passing a portion of these costs onto consumers. The risk of inflation increasing in the coming months may intensify. The overall outlook remains neutral to slightly pessimistic, with only a few regions anticipating growth in economic activity.