The latest Beige Book from the Federal Reserve paints a picture of U.S. economic activity remaining relatively stable despite ongoing inflation challenges. While consumer spending has slightly decreased, employment levels have largely remained unchanged. However, labor demand is weakening in many areas as employers resort to layoffs and natural attrition. Price pressures are also intensifying, with several regions experiencing accelerated input cost growth. The Beige Book indicates a notable shift in the labor market over the past six weeks, with ‘labor demand generally weak across regions and industries,’ according to the report. This contrasts with earlier observations in September where job changes were minimal. Notably, wage increases have been reported across all regions, although their pace remains moderate to average. This data comes despite ongoing calls for further interest rate cuts at the upcoming Federal Reserve meeting. Recently, an increasing number of policymakers, including those leaning towards a hawkish approach, have publicly advocated for short-term interest rate reductions.