Fed’s Beige Book: Outlooks were mildly optimistic

The Fed's Beige Book highlights a mildly optimistic outlook for the economy, compiled based on information up to January 5th, 2026. The report reflects economic activities across various regions, consumer spending trends, and employment dynamics. Economic growth continues at a steady pace, with many sectors anticipating increased demand. Notably, improvements in manufacturing demand are prominent, and employment remains robust. Retailers maintain an optimistic view towards consumer spending, which is expected to have a positive impact on the broader economy. However, close attention is needed on how inflation pressures and interest rate effects might influence future economic recovery.