Federal Reserve Beige Book: U.S. economy expands modestly but inflationary pressures intensify; AI boosts productivity while dampening hiring demand at some firms

Zhito Finance APP has learned that the latest Beige Book on economic conditions released by the Federal Reserve on Wednesday shows that U.S. economic activity generally continued to grow, but performance varied across regions, consumer spending was broadly weak, and the labor market changed little. At the same time, rising energy prices, tariffs, and climbing insurance costs continued to push up business operating costs, further intensifying inflationary pressure in some regions. Notably, as companies increase investment in artificial intelligence (AI), some firms have begun to reduce hiring needs by improving productivity, and AI's impact on the U.S. labor market is gradually emerging.