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Fed Beige Book Shows K-Shaped Economy Widening as Inflation Exceeds 4% in May

2026-06-04 05:51:12

According to the Federal Reserve's Beige Book released Wednesday (June 3), the so-called K-shaped economy is continuing to widen, with higher-income households demonstrating greater resilience to inflation compared to middle- and lower-income families. The report, which compiles observations from the Fed's 12 regional banks, noted that May inflation rose above April levels at a moderate-to-strong pace across most districts, driven primarily by energy prices linked to Middle East tensions. Lower-income consumers face heightened financial pressure, with increased credit card usage and reduced retail foot traffic reflecting consumer stress.

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