Fed's Beige Book indicates modest economic activity growth and moderate price increases

The Federal Reserve's latest Beige Book reports that economic activity has increased modestly across most districts in recent weeks, with growth notably driven by demand from data centers. Price increases were moderate, slowing in three districts, rising in one, and remaining unchanged in eight, as consumer price sensitivity limited businesses' ability to pass on higher input costs. Sentiment remains mixed due to ongoing uncertainty stemming from elevated energy prices, policy shifts, and international conflict. Financial markets are currently pricing in a 65% chance of a rate hike this month.