03:42 PM EDT, 09/03/2025 (MT Newswires) -- US economic activity and employment levels were little changed since July, while firms in most Federal Reserve districts expected price increases to continue in the coming months, the central bank said in its latest Beige Book released Wednesday.

Eight districts saw "little or no change" in economic activity since the previous reporting period, while the remaining four saw modest growth, according to the document, prepared by the Philadelphia Fed based on data collected by Aug. 25.

The previous report, which was released July 16, showed that economic activity rebounded between late May and early July, though concerns about rising cost pressures grew.

There was "little or no net change" in employment levels in 11 Fed districts, according to the Wednesday report. Firms in seven districts were hesitant to hire workers due to weaker demand or uncertainty, while contacts in multiple districts reported lowering headcounts via attrition.

"The latest Beige Book will only reinforce (Fed Chair Jerome Powell's) newfound concern about downside employment risks and, if affirmed by a weak August jobs report on Friday, could spur the first reduction in policy rates this year in two weeks," BMO Capital Markets Senior Economist Sal Guatieri said in a report.

Powell recently indicated a potential monetary policy pivot, saying that downside risks to employment were rising, while the effects of tariffs on inflation will likely be short lived. On Friday, official data are expected to show that the US economy added 75,000 nonfarm jobs last month, compared with a 73,000 gain reported for July, according to a Bloomberg-compiled survey.

Almost all Fed districts saw price hikes tied to tariffs, with contacts from many districts saying that import levies were "especially impactful" on input prices, the Beige Book showed Wednesday. "Most districts reported that their firms were expecting price increases to continue in the months ahead, with three of those districts noting that the pace of price increases was expected to rise further."

US President Donald Trump said on Tuesday that he will seek an "expedited ruling" from the US Supreme Court to reverse a decision by an appeals court that found most of his global tariffs illegal, CNBC reported.

"Overall, sentiment was mixed among the districts," the Beige Book showed Wednesday. "Most firms either reported little to no change in optimism or expressed differing expectations about the direction of change from their contacts."