The Federal Reserve’s latest Beige Book, compiled by the Boston Fed from information collected through 7 July and released on 16 July, indicates that U.S. economic activity increased slightly between late May and early July. The advance marked a modest improvement on the prior report, which had shown more widespread declines. Five of the central bank’s 12 districts reported slight or modest growth, five said activity was flat, and two cited modest declines. Business contacts described the economic outlook as neutral to slightly pessimistic, with only two regions expecting growth in the months ahead amid persistent uncertainty. Price pressures remained broad-based: every district recorded higher prices, with seven characterising gains as moderate and five calling them modest—little changed from the previous survey. Firms pointed to elevated input costs linked to the 145% tariff on Chinese goods and other trade levies, and many said they had passed at least part of those increases on to consumers, squeezing profit margins. Employment edged up but hiring stayed cautious, and several districts noted reduced availability of foreign-born workers. The Fed’s benchmark rate has been held at 4.25%–4.50% since December, and most officials favour waiting at least until September before considering a move, though a minority have signalled the issue could be debated at the 29-30 July policy meeting.