Fed's Beige Book describes modest growth and moderate price increases

The Federal Reserve's Beige Book, released ahead of its September policy meeting, characterised economic activity with these points:

• Since early July, economic activity has increased at a modest pace.
• The outlook for the coming months is positive, though sentiment varies across sectors.
• Contacts reported greater uncertainty due to higher energy prices, policy issues, and international conflict.
• Employment rose very slightly overall.
• Three districts saw modest employment gains, four reported slight gains, and five saw no change.
• Prices increased moderately in eight districts.
• Two districts experienced modest price increases, one reported slight increases, and one saw robust increases.

The Beige Book offers a snapshot of the U.S. economy based on reports from businesses and other contacts across the Fed's 12 regional districts. It is released eight times a year, prior to each Fed policy meeting.

Rather than focusing mainly on statistics, it gathers firsthand observations on:

• Consumer spending: whether people are buying more or pulling back.
• Employment and wages: whether businesses are hiring, cutting jobs, or raising pay.
• Prices: whether costs are rising and if firms can pass them on to customers.
• Business activity: whether manufacturing, housing, and other sectors are strengthening or slowing.

For traders, the Beige Book helps answer whether the economy is heating up or cooling down. Stronger activity and persistent price pressures could support keeping interest rates higher. Slower growth and easing inflation could support rate cuts.

The Beige Book does not announce policy or promise the Fed's next move. It adds context to the economic data policymakers use to make those decisions.

U.S. stocks are trading higher, with the S&P 500 up 0.47% and the Nasdaq up 0.37%.

U.S. Treasury yields are mixed, with the two-year note down 1.05 basis points at 4.383%. The 10-year yield is unchanged at 4796% and the 30-year bond is up 0.7 basis points at 5.267%.

Crude oil futures have moved back above $91, currently at $91.41, up about $1.20. The day's high reached $92.29, and the low was $88.97.