Fed rate decision hangs in balance as US growth firms and prices climb

The Federal Reserve's latest Beige Book shows modest US economic growth, slight employment gains, and persistent price pressures, leaving the central bank's September rate decision finely balanced ahead of its September 15-16 meeting. Price increases slowed in three districts, accelerated in one, and remained unchanged in eight, with businesses citing rising costs for energy, transportation, and raw materials. Financial markets priced in roughly a 65 percent probability of a rate hike, while Fed Chair Kevin Warsh signaled he could support one if inflation data disappoints. The report also highlighted housing market strain, mixed labor conditions, and strong demand from AI data-center construction. Data was collected on or before August 24, so recent developments may not be reflected.