Rate cut expectations were dampened! The Brown Book indicates that the U.S. economy is slightly improving but inflation is on the rise again.

According to the latest Beige Book released by the Federal Reserve on Wednesday, the US economy experienced "slight growth" from the end of May to early July, showing some improvement compared to the previous period when activities in some regions were declining. However, with the growth comes increasingly noticeable inflationary pressures, especially as the Trump administration's new round of tariff policies is pushing up costs for businesses, exacerbating concerns in the market about a rebound in inflation.