Fed says US economic growth edged up in early 2026

The Federal Reserve’s “Beige Book” showed a slight rise in the US economy at the start of 2026

The US economy grew slightly at the start of 2026, according to the Federal Reserve’s “Beige Book” report released on Wednesday, as uncertainty, rising prices, and severe winter weather weighed on the pace of expansion.

The report, which assesses economic conditions and is published roughly two weeks before monetary policy meetings, said purchasing power and the cost of living remained key concerns for consumers. Higher inflation has curbed spending among lower-income households.

On the labor market, the Federal Reserve said most companies continued to adopt a cautious hiring approach. Employment levels were unchanged in seven of the 12 districts, while firms have begun exploring the use of artificial intelligence to improve operational performance.

Wage growth remained relatively stable, although companies reported higher healthcare costs.

On inflation, many businesses raised prices moderately to offset higher costs linked to tariffs. Despite these pressures, some firms faced consumer resistance to price increases, forcing them to keep prices unchanged.