The Beige Book data is too fragmented—on one side, AI infrastructure is booming, and on the other, ordinary people's wallets are shrinking. A classic K-shaped recovery.

The U.S. Federal Reserve Beige Book shows the U.S. economy as “two-sided”: In May, private employment rose by 122,000; AI data centers boosted capital expenditures; Alphabet’s funding rose to $84.75 billion; SpaceX’s valuation is nearly $1.8 trillion. Core inflation is 3.8%, driven by energy, tariffs, and AI spending. Consumer confidence hits a new low, real wages decline, and some companies delay investments. Williams says there will be no rate hike for now, while Logan says there may be another hike this year. Bridgewater’s founder warns that AI investments may be in a bubble. The world’s first ETF over $1 trillion, VOO, is launched, with money concentrated in leading companies.