The Federal Reserve’s Beige Book reported that US economic activity expanded at
a slight-to-modest pace, but the war with Iran has increased uncertainty and
pushed energy costs sharply higher across all 12 districts. The Fed said firms
cited the conflict as a major factor complicating hiring, pricing, and
investment decisions, with many adopting a wait-and-see approach. Energy and
fuel prices rose “sharply” nationwide, contributing to inflationary pressures
already visible in recent data. Policymakers are expected to hold rates steady
at their upcoming meeting as they assess the war’s impact on inflation and
growth dynamics.
