Economic Activity Grows in Most Fed Districts, Beige Book Shows

03:23 PM EST, 03/04/2026 (MT Newswires) -- Most Federal Reserve districts saw growth in economic activity since mid-January, while overall prices rose moderately in recent weeks, the US central bank said in its latest Beige Book released Wednesday.

Seven districts reported a slight to moderate rise in economic activity, while the remaining five saw flat or declining activity, according to the latest document, prepared by the Cleveland Fed based on data collected by Feb. 23.

The previous Beige Book, which was released Jan. 14, showed that most Fed districts reported growth in economic activity since late November, while the overall outlook was "mildly optimistic."

"Although consumer spending increased slightly on balance, two districts reported ongoing declines, and many noted that sales were dampened by economic uncertainty, increased price sensitivity, and lower-income consumers pulling back on spending," according to the latest report released Wednesday.

Eight districts saw moderate price growth in recent weeks, while the remaining four reported slight or modest gains. Many districts said that costs increased across several non-labor inputs, while nine reported that tariffs contributed to higher costs, the document showed.

"Some firms continued to pass tariff-related cost increases through to their customers, and others began to do so after having absorbed previous increases," the Beige Book showed. "On balance, firms expected prices to rise at a somewhat slower pace in the near term."

US President Donald Trump's recently announced 15% global tariffs are expected to be implemented sometime in the ongoing week, CNBC reported Wednesday, citing Treasury Secretary Scott Bessent.

Last month, the US Supreme Court invalidated Trump's reciprocal tariffs imposed in 2025 under the International Emergency Economic Powers Act, prompting him to announce the global tariffs.

"It's my strong belief that the tariff rates will be back to their old rate within five months," Bessent told CNBC in an interview Wednesday.

Seven Fed districts saw no change in hiring in recent weeks, while most districts reported that wages increased at a modest or moderate rate, the Beige Book showed. "Contacts in several districts cited rising non-labor input costs, softer demand, or uncertainty about overall economic conditions as reasons for flat or lower employment levels."

Official data are expected to show Friday that the US economy added 58,000 nonfarm jobs in February, which would represent a drop from a 130,000 increase reported for the month prior, according to a Bloomberg-compiled survey. The unemployment rate is seen unchanged at 4.3%.

"Overall, economic expectations were optimistic, with most districts expecting slight to moderate growth in the coming months," according to the Beige Book.

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