June 4 (Reuters) - U.S. economic activity

has declined and higher tariff rates have put upward pressure on costs and prices in the weeks since Federal Reserve policymakers last met to set interest rates, the U.S. central bank said on Wednesday in its latest snapshot of the nation's economy.
"On balance, the outlook remains slightly pessimistic and uncertain, unchanged relative to the previous report," according to the document, known as the "Beige Book" and which is based on surveys, interviews and observations collected from the commercial and community contacts of each of the Fed's 12 regional banks through May 23. "There were widespread reports of contacts expecting costs and prices to rise at a faster rate going forward."
The Reuters Tariff Watch newsletter is your daily guide to the latest global trade and tariff news. Sign up here.

Advertisement · Scroll to continue

Report This Ad
The Fed has kept its policy rate in the current 4.25%-4.50% range since December and is widely expected to leave it there for another few months while its policymakers gauge the impact of U.S. President Donald Trump's trade and other policies on inflation and the labor market. Analysts and Fed policymakers alike say they anticipate both the inflation and the labor market data to deteriorate, and the Beige Book suggests it is already happening, if still unevenly.
In January, all 12 Fed districts reported economic growth; the latest report showed just three did, while half reported economic declines.