Fed Beige Book: Economy Growing, Inflation Easing, Tariff Risks Linger

The Federal Reserve's latest Beige Book survey showed the US economy expanding at a modest pace through early April. Seven of the 12 Fed districts reported slight or modest growth. The remaining five saw flat or declining activity.

Consumer spending held steady. Several districts noted a shift toward lower-priced goods as households faced higher fuel prices.

Labor markets continued to cool. Wage growth moderated in most regions. Workers were less willing to quit, the survey said, which helped ease service-sector price pressures.

Tariffs remained a concern. Contacts in manufacturing and agriculture told the Fed that proposed levies created uncertainty for investment and hiring. Some firms front-loaded imports to avoid potential cost increases.

Fuel costs squeezed margins for transportation and logistics companies, the survey noted. Some passed those costs through to consumers.

The Beige Book is based on anecdotal reports collected through April 7. The next Fed rate decision is May 3. Markets price an 80% chance of no change, according to CME FedWatch data.