The latest Beige Book released by the Federal Reserve System shows that, based on information collected through January 5, 2026, economic activity expanded slightly to moderately in 8 out of the 12 Federal Reserve districts, was essentially unchanged in 3 districts, and edged down in 1 district. The overall performance has improved compared with previous cycles. Employment saw little overall change, as businesses mainly relied on temporary hiring and filling vacant positions to cope with uncertainties, and wage growth has returned to a more normal level. Prices continued to rise moderately, with widespread cost pressures related to tariffs. Some enterprises have started passing these costs on to downstream sectors, while energy and insurance costs are squeezing corporate profits.