Wu said that the Federal Reserve's May Beige Book shows that overall U.S. economic activity is growing at a slight to moderate pace, consumer spending continues to diverge, with high-income groups' consumption remaining relatively stable, while middle- and low-income households are becoming more cautious due to affordability pressures.

The labor market is generally flat, with only one district experiencing moderate growth, and businesses broadly maintaining a "low hiring, low layoffs" stance.
Prices are rising at a moderate to faster pace, with most districts reporting increased inflationary pressures compared to the previous report, mainly driven by higher energy costs resulting from Middle East conflicts.