The Federal Reserve's Beige Book: Moderate Expansion of the US Economy, Inflation and Policy Uncertainty Still Pose Risks According to a report by Zhitong Finance, the latest "Brown Book" released by the Federal Reserve shows that the overall US economy remained stable in early 2026, but stubborn inflation, a slowing job market, and policy uncertainty are posing new risks. The report shows that the US economy exhibited relatively robust fundamentals at the beginning of the year, but businesses remain cautious about future prospects. The companies surveyed by the New York Federal Reserve stated that consumer spending has rebounded, but many households are still reducing their large spending due to uncertainty. In terms of employment, the "Brown Book" shows that the overall employment scale in most regions was stable at the beginning of the year, but the labor market lacked significant vitality. Inflation remains a common concern for businesses. The Beige Book shows that all 12 Federal Reserve jurisdictions have reported price increases, with 8 regions experiencing moderate inflation levels and 4 regions experiencing slight increases. Enterprises generally mention the rising costs of insurance, energy, and raw materials, while tariffs are also pushing up production costs. The report was compiled by 12 regional Federal Reserve banks based on surveys conducted before February 23, and therefore has not yet reflected the impact of recent major events, such as the Supreme Court's ruling overturning some tariff policies and the latest outbreak of the Middle East conflict.