Mucahithan Avcioglu
15 January 2026•Update: 15 January 2026
ISTANBUL
The US Federal Reserve reported Wednesday that overall economic activity was increasing at a "slight to moderate" pace in most parts of the country.
The Beige Book, prepared with analyses from the bank's 12 branches, stated that overall economic activity increased at a "slight to moderate" pace in eight of the 12 regions, showed no change in three regions and experienced a moderate decline in one.
"This marks an improvement over the last three report cycles where a majority of Districts reported little change," it said.
The document noted that most banks reported a "slight to moderate" increase in consumer spending, largely driven by the holiday shopping season, with several regions showing stronger spending by high-income consumers, driven by increased spending on luxury goods, travel, tourism and experience-based activities.
It also stated that, conversely, low- and middle-income consumers were becoming increasingly price-sensitive and more hesitant to spend on non-essential goods and services.
Employment remains mostly unchanged
It said employment remained mostly unchanged recently, with eight out of 12 regions reporting no changes in hiring.
The report pointed out that companies are hiring to fill vacancies rather than create new positions, and continue to experience difficulties finding qualified labor, particularly in engineering, health care and other technical fields.
It stated that the current effect of artificial intelligence on employment is limited, and more significant effects are expected to be seen in the coming years rather than the short term.
- Prices increase at moderate rate
The beige book stated that prices increased at a moderate rate in the vast majority of regions, with only two reporting slight price increases.
"Cost pressures due to tariffs were a consistent theme across all Districts. Several contacts that initially absorbed tariff-related costs were beginning to pass them on to customers as pre-tariff inventories became depleted or as pressures to preserve margins grew more acute," it said.
Businesses in some sectors, however, such as retail and restaurants, were reluctant to pass on cost increases to price-sensitive customers.
