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The Federal Reserve stated that with the new uncertainty and rising energy costs sparked by the war with Iran, economic activity in most regions of the United States continues to grow at a moderate to modest pace. In the Beige Book released on Wednesday, the Federal Reserve noted that overall price increases are still moderate, but energy and fuel costs have risen "significantly" in all 12 Fed districts. The Federal Reserve stated, "The Middle East conflict is seen as a major source of uncertainty that has increased the complexity of businesses' decisions in hiring, pricing, and capital investment, with many businesses taking a wait-and-see approach." The report, compiled by the New York Fed using data up to April 6th, reflects the initial impact of the war on the U.S. economy. The oil price shock triggered by the conflict has pushed up gasoline prices, driving the largest increase in U.S. inflation since 2022 in March. Several Federal Reserve policymakers have signaled a tendency to maintain stable interest rates for a longer period to evaluate economic data.