PANews reported on June 4th that, according to a report by Cailian Press, the Federal Reserve's Beige Book released on Wednesday showed that although the AI ​​investment boom continues, the US economy is showing signs of pressure on consumption, weak hiring, and rising prices. Data showed that among the 12 Fed districts, economic activity grew at a "slight to moderate" pace in 10 districts, declined slightly in one district, and remained unchanged in one district. The report indicated that businesses' outlook for the next six months remained largely unchanged, but persistently high uncertainty and signs of slowing consumer spending are dragging down market sentiment, with businesses expecting no significant improvement in the economic growth outlook. Districts generally reported that rising energy costs related to the Middle East conflict are the main source of current inflationary pressures, which have further spread to transportation, packaging, groceries, and fertilizers.

The Federal Reserve's most closely watched inflation gauge showed that the inflation rate jumped to 3.8% in April from 3.5% in March. Meanwhile, the labor market, which appeared weak last year, has stabilized after the Fed cut interest rates. The latest Beige Book survey results may further strengthen voices within the Fed opposing rate cuts. The central bank has kept interest rates in the 3.50%-3.75% range this year. Warsh may be hoping for an AI revolution to lower inflation, but at least for now, prices are still rising. Meanwhile, reports from several Fed districts suggest that the adoption of AI appears to have slowed the hiring demand for new graduates.