Beige Book
  • Economic activity was about flat or up slightly since the previous report (vs modest growth previously)
  • Five Districts reported slight or modest gains in activity, and the rest experienced either no change or slight-to-modest declines
  • Many contacts expressed greater uncertainty or increased pessimism concerning the outlook
  • Consumer spending eked out slight gains
  • Manufacturing activity was mixed across Districts but up slightly on average
  • Higher interest rates further dented home sales, which declined at a moderate pace overall but fell steeply in some Districts
  • Inflation was expected to hold steady or moderate further moving forward.

Full release.

Here's the full commentary on inflation:

"Consumer prices rose at a moderate or strong pace in most Districts. Still, the pace of price increases slowed on balance, reflecting a combination of improvements in supply chains and weakening demand. Retail prices faced downward pressure as consumers increasingly sought discounts. Prices fell for some commodities , including lumber and steel, but food prices increased further or remained elevated in some Districts. Housing rent growth started to moderate in some Districts and home prices grew less rapidly or declined outright amid weak demand. Inflation was expected to hold steady or moderate further moving forward."

This is overshadowed by Powell's comments but it adds to his case that rate hikes are working.