U.S. Economy Stagnates Amid Job Market Concerns

The U.S. economy showed little change in recent weeks, with a weaker job market in several Federal Reserve districts and declining consumer spending. The Federal Reserve's 'Beige Book' report highlights the mixed economic indicators, increasing odds of another interest rate cut in December amidst ongoing policy debates and inflation concerns.

The U.S. economy remains stagnant with minimal changes in recent weeks, according to the Federal Reserve's 'Beige Book' report. The latest data reveals weaker employment across half of the Fed's districts and a decline in consumer spending, casting shadows over the job market ahead of the next interest rate decision.

Published two weeks prior to each Federal Reserve policy meeting, the report offers critical insights into economic health, especially in the wake of a 43-day government shutdown. The shutdown led to data delays, increasing the report's significance as policymakers contemplate another rate cut following a recent three-quarter-point cumulative reduction.

Interest rate futures signal a high likelihood of another rate cut in December, despite internal disagreements among Fed officials. The economic landscape is further complicated by rising input cost pressures due to tariffs and impacted consumer behavior from the government shutdown, affecting less affluent households more significantly.

(With inputs from agencies.)