Federal Reserve Beige Book: US Economy Grows Moderately but Momentum Slightly Slows

The Federal Reserve System (Fed) has released its closely watched Beige Book report, providing the market with the latest on-the-ground insights into economic trends. The report shows that as of February 23, 2026, seven of the 12 Federal Reserve districts across the United States experienced moderate to modest economic growth. Previously, only four districts reported stagnation or decline, but that number has risen to five, reflecting a weakening of economic growth in some areas.

Regarding the labor market, competition for talent among companies continues to intensify. Wage levels in most districts remain on a slight upward trend. Although employers intend to raise salaries to attract and retain employees, the increases are generally limited, with no significant spikes. This phenomenon indicates that although employment demand remains strong, wage growth under inflationary pressure has become more rational.

At the price level, 80% of the districts observed a moderate increase in prices, while the other four districts reported a slight to moderate increase. Overall inflation remains within a controllable range, but there are no clear signs of a decline. Overall, the US economy is still on an expansionary track, but the growth momentum in some regions has weakened marginally, suggesting that policymakers may pay more attention to the sustainability of growth and inflation balance in the future. The report emphasizes that current economic data provides an important reference for policy formulation but does not provide clear guidance on the interest rate path.