Fed Beige Book Shows Flat Growth, Reinforces December Rate-Cut Odds

Based on Bpaynews, the Federal Reserve’s November Beige Book reported largely flat economic activity and moderate price growth across most districts, reinforcing market expectations of an 84% chance for a December rate cut. The report, compiled through November 17, 2025, noted softer labor demand, modest wage growth, and elevated input costs from tariffs and services. Labor demand cooled as companies favored hiring freezes and reduced hours over layoffs, while AI adoption affected entry-level roles and hiring trends. Price pressures remained moderate, though firms faced margin compression from tariffs and rising insurance and utility costs. Regional reports showed mixed activity, with some districts reporting slight declines and others modest growth. The report supports a dovish lean for the December FOMC meeting, with the dollar and Treasury yields sensitive to further macroeconomic signals.