The Federal Reserve's "Brown Book" shows that the wealth gap in US consumer spending is intensifying

New York, June 3 (Xinhua) -- The national economic situation survey report released by the Federal Reserve on the 3rd showed that during the most recent reporting period from April 7 to May 27, the overall economic activity in the United States expanded "mildly to moderately", but consumer spending showed a differentiated trend.

According to the Federal Reserve Act of the United States, the country is divided into 12 Federal Reserve districts, with one Federal Reserve Bank established in each district. This report is compiled based on the latest survey results of 12 Federal Reserve banks, also known as the 'brown book'.

The report states that consumer spending in different Federal Reserve regions remains uneven, with increasing differentiation in consumer spending among different income groups. High income households are less sensitive to price increases, while middle-income households "spend every dollar carefully," and low-income households face greater financial pressure. Overall, consumer credit card usage has increased, retail store foot traffic has decreased, and demand for essential goods has increased. Due to increased uncertainty and signs of weakened consumer spending suppressing market sentiment, companies' growth expectations for the next six months remain largely unchanged.

The report also stated that there has been little or no change in the labor market in the 11 Federal Reserve districts, and multiple Federal Reserve districts have shown strong performance in manufacturing recruitment. Prices are rising at a moderate to strong pace overall, with most Federal Reserve areas experiencing higher inflation levels than in the previous reporting period. The main reason for the increased inflationary pressure is the rise in energy costs caused by the Middle East conflict, which has spread to areas such as transportation, packaging, daily necessities, and fertilizers.

The Federal Reserve releases the "Beige Book" eight times a year to assess the economic situation in the United States through various Federal Reserve banks, which is an important reference material for the Federal Reserve's monetary policy meetings. The next monetary policy meeting of the Federal Reserve will be held on June 16-17.