Fed's Beige Book finds price growth robust in three districts, intensifying in three more
Eight of the central bank's regional districts call price growth moderate, and three of those flag quickening input costs.
Published
The Federal Reserve's Beige Book, a survey of economic conditions across its districts, shows three districts describing overall price growth as robust. Eight others call growth moderate, and three of those eight say input price pressures are intensifying, with some edging toward robust.
The report adds a geographically broad data point to an inflation debate that sharpened this week. September CPI came in at 3.7% headline and 2.6% core. Traders are now pricing roughly 90% odds of a December rate hike and are adding bets on further increases through 2027. Citigroup has added a December hike to its own Fed forecast while still expecting cuts in 2027.
The regional detail lines up with comments from officials who have pushed for continued tightening. Cleveland Fed President Beth Hammack has said the central bank needs more tightening and is open on pace, and that inflation pressures are broadening beyond spending on artificial intelligence to other companies, with consumers still ready to invest. Chicago Fed President Austan Goolsbee has warned that tariffs and oil prices could push the economy toward stagflation, and has separately called artificial intelligence an inflation problem. Hammack has also said business contacts describe conditions as strong to booming even as low-income households struggle to cover bills, a split other officials, including Philip Jefferson, John Williams and Michelle Bowman, have cited in making the case for patience.
Unlike the CPI print, the Beige Book is anecdotal and district-level rather than hard data, so it adds texture to the debate over the pace of tightening without settling it.