{"id":56503,"date":"2025-11-26T15:08:26","date_gmt":"2025-11-26T19:08:26","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/fed-beige-book-reveals-stagnant-economic-activity-moderate-inflation-amid-slower-outlook-warnings\/56503\/"},"modified":"2025-11-26T15:08:26","modified_gmt":"2025-11-26T19:08:26","slug":"fed-beige-book-reveals-stagnant-economic-activity-moderate-inflation-amid-slower-outlook-warnings","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/fed-beige-book-reveals-stagnant-economic-activity-moderate-inflation-amid-slower-outlook-warnings\/56503\/","title":{"rendered":"Fed Beige Book Reveals Stagnant Economic Activity, Moderate Inflation Amid Slower Outlook Warnings"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>U.S. economic activity remained largely flat<\/strong> across most of the Federal Reserve&#39;s 12 districts since the previous report, with two districts noting modest declines and one reporting modest growth.<\/li>\n<li><strong>Prices increased at a moderate pace<\/strong> during the reporting period, while <strong>wages grew modestly overall<\/strong>, with stronger pressure observed in the manufacturing and construction sectors.<\/li>\n<li><strong>Business contacts warned of a higher risk of slower activity ahead<\/strong>, although manufacturers reported some improvement in optimism.<\/li>\n<li>The <strong>Treasury Department announced a contingency plan<\/strong> to address the absence of October Consumer Price Index (CPI) data for Treasury Inflation-Protected Securities (TIPS).<\/li>\n<li>The <strong>Bank of Mexico (Banxico) revised its Q4 2025 headline inflation forecast slightly lower<\/strong> to 3.5% from 3.7% but <em>raised<\/em> its core inflation projection for the same period to 4.1% from 3.7%.<\/li>\n<\/ul>\n<p>The latest Federal Reserve Beige Book, compiled by the Federal Reserve Bank of Dallas using data through November 17, 2025, indicates that U.S. economic activity was largely unchanged across most of the twelve Federal Reserve districts. Two districts reported a modest decline, while only one observed modest growth. This largely flat activity suggests a period of stabilization, though with mixed regional performance.<\/p>\n<p>On the inflation front, the report noted that prices increased at a moderate pace during the reporting period. Wage growth was modest overall, with more significant pressure observed in the manufacturing and construction industries. Despite some improvement in optimism among manufacturers, business contacts expressed concerns about a higher risk of slower economic activity in the coming period.<\/p>\n<p>In other significant financial news, the Treasury Department has implemented a contingency plan to manage the absence of October CPI data, which is crucial for calculating payments for Treasury Inflation-Protected Securities (TIPS). This measure ensures continuity for TIPS investors amidst data disruptions.<\/p>\n<p>Internationally, the Bank of Mexico (Banxico) has adjusted its inflation outlook. For the fourth quarter of 2025, Banxico now projects headline inflation to average 3.5%, a slight decrease from its previous estimate of 3.7%. Conversely, the central bank raised its core inflation forecast for the same period to 4.1% from 3.7%. Projections for both headline and core inflation for Q4 2026 remain unchanged.<\/p>\n<p>Finally, the Federal Reserve&#39;s reverse repo operation saw $2.217 billion taken by 6 counterparties, a decrease from the $2.314 billion taken by 8 bidders in the previous operation. This indicates a slight reduction in the demand for this overnight liquidity facility.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways U.S. economic activity remained largely flat across most of the Federal Reserve&#39;s 12 districts since the previous report, 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