Federal Executive Branch
Here's a look at documents from the U.S. Executive Branch
Featured Stories
White House Fact Sheet: Directing Comprehensive Customs Reform
WASHINGTON, June 4 -- The White House issued the following fact sheet on June 3, 2026:
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President Donald J. Trump Strengthens Customs Enforcement
DIRECTING COMPREHENSIVE CUSTOMS REFORM: Today, President Donald J. Trump signed an Executive Order that will strengthen the enforcement of U.S. customs laws through comprehensive reform.
* The Order directs the Department of Homeland Security (DHS) and U.S. Customs and Border Protection (CBP) to strengthen several requirements for importers of record (IORs). Examples include:
- increasing bonding requirements and requiring IORs to maintain at
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WASHINGTON, June 4 -- The White House issued the following fact sheet on June 3, 2026:
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President Donald J. Trump Strengthens Customs Enforcement
DIRECTING COMPREHENSIVE CUSTOMS REFORM: Today, President Donald J. Trump signed an Executive Order that will strengthen the enforcement of U.S. customs laws through comprehensive reform.
* The Order directs the Department of Homeland Security (DHS) and U.S. Customs and Border Protection (CBP) to strengthen several requirements for importers of record (IORs). Examples include:
- increasing bonding requirements and requiring IORs to maintain atall times a minimum level of tangible domestic assets, bonding, or both;
- subjecting foreign IORs to heightened requirements for formal entry;
- authorizing only U.S. IORs to file informal entry;
- imposing a "good standing" requirement on all IORs; and
- increasing vetting procedures for all individuals and entities that conduct activities directly related to the importation of goods.
* The Order directs DHS and CBP to establish various disclosure and certification requirements designed to combat duty evasion and noncompliance with supply chain rules.
* The Order directs DHS and CBP to increase enforcement of existing customs laws, including by establishing a 50% minimum penalty floor limiting CBP's discretion to reduce the assessed penalties on importers who violate our customs laws.
* The Order directs DHS to enhance the seizure and disposal of non-compliant imports, including by reducing regulatory burdens to voluntary abandonment and authorizing third-party disposal.
* The Order directs DHS to enhance transparency in customs, including by publishing annual transparency reports.
* The Order directs DHS to propose legislation to strengthen customs enforcement.
PROMOTING ECONOMIC STRENGTH AND NATIONAL SECURITY BY COMBATTING CUSTOMS FRAUD: President Trump recognizes the critical role of customs enforcement to our national security and that action is needed to address longstanding issues with the existing regulatory environment.
* Customs enforcement is essential to the national security and economy of the United States. For example, it prevents the importation of unlawful and dangerous goods, and it ensures that IORs are accountable for duties owed and comply with numerous federal laws, including laws governing forced labor and product safety.
* Customs reform is long overdue. Systemic inefficiencies, loopholes, insufficient enforcement mechanisms, and outdated processes have created opportunities for malign actors to evade federal law.
* The Order addresses these longstanding concerns through comprehensive reform focused on protecting national security, promoting lawful trade, ensuring the timely collection of duties, modernizing systems and processes, bolstering compliance mechanisms, and protecting Americans and the domestic economy.
* The Order also brings U.S. customs policy and practice in line with many of our trading partners. For example, the current practice of most foreign countries is to either prohibit foreign entities or persons from serving as the IOR or generally require that foreign importers partner with verified domestic parties. This practice promotes compliance and accountability while reducing barriers to enforcement.
* The reforms directed in the Order will not take effect immediately. In general, DHS and CBP will engage with relevant stakeholders through the standard rulemaking process, meaning affected parties will have a meaningful opportunity to adjust operations, if needed.
BUILDING ON A RECORD OF PUTTING AMERICA FIRST IN TRADE: President Trump is taking action to restore integrity to our customs system, crack down on duty evasion, and ensure that foreign importers play by the rules.
* On Day One, as part of his America First Trade Policy, President Trump directed his Administration to take a number of steps to ensure that duties are collected and tariffs are not evaded.
* President Trump suspended the de minimis loophole -- long exploited by foreign shippers to flood American markets with cheap, duty-free goods and funnel illicit fentanyl into the country.
* A number of President Trump's Agreements on Reciprocal Trade include commitments to cooperate on combatting duty evasion.
* The President signed into law the One Big Beautiful Bill Act, which permanently repealed the statutory basis for the de minimis exemption worldwide, effective July 1, 2027.
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Original text here: https://www.whitehouse.gov/fact-sheets/2026/06/fact-sheet-president-donald-j-trump-strengthens-customs-enforcement/
SEC Obtains Final Judgment in Fraudulent Offering
WASHINGTON, June 4 -- The Securities and Exchange Commission issued the following litigation release (No. 2:21-cv-04211-HDV-MAR; C.D. Cal. filed May 20, 2021) involving Ross Gregory Erskine:
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On May 20, 2026, the U.S. District Court for the Central District of California entered a final judgment as to Ross Gregory Erskine in connection with the SEC's civil enforcement action against him.
On May 20, 2021, the SEC filed a complaint alleging that, between approximately May 29, 2018, and May 29, 2019, LFS Funding Limited Partnership raised more than $618,000 from investors through a fraudulent
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WASHINGTON, June 4 -- The Securities and Exchange Commission issued the following litigation release (No. 2:21-cv-04211-HDV-MAR; C.D. Cal. filed May 20, 2021) involving Ross Gregory Erskine:
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On May 20, 2026, the U.S. District Court for the Central District of California entered a final judgment as to Ross Gregory Erskine in connection with the SEC's civil enforcement action against him.
On May 20, 2021, the SEC filed a complaint alleging that, between approximately May 29, 2018, and May 29, 2019, LFS Funding Limited Partnership raised more than $618,000 from investors through a fraudulentsecurities offering of limited partnership interests. The complaint further alleged that Erskine, who was not registered as a broker or dealer, solicited prospective investors to purchase interests in the partnership, including by providing them private placement memorandums that contained materially misleading statements, and received commissions upon successfully soliciting an investor to purchase interests in the partnership.
On August 25, 2023, the Court granted the SEC's motion for summary judgment, finding that Erskine violated Sections 15(a) and 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and Sections 5 and 17(a) of the Securities Act of 1933. The final judgment permanently enjoins Erskine from violating the above-stated provisions of the federal securities laws and from soliciting any person or entity to purchase or sell any security. The Court also ordered Erskine to pay, jointly and severally with his business entities, disgorgement of $60,625 with prejudgment interest of $15,450.03 and a civil penalty of $100,000.
The litigation was handled by Charles Canter and supervised by Stephen Kam of the SEC's Los Angeles Regional Office.
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Resources
* Final Judgment - Ross Gregory Erskine (https://www.sec.gov/files/litigation/litreleases/2026/judg26559.pdf)
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Original text here: https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26559
Making America Safe Again: DOJ to Award $300 Million to Model Cities Dedicated to Restoring Law and Order
WASHINGTON, June 4 -- The U.S. Department of Justice issued the following news release on June 3, 2026:
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Making America Safe Again: DOJ to Award $300 Million to Model Cities Dedicated to Restoring Law and Order
The Model Cities Initiative will demonstrate the effectiveness of the Make America Safe Again Mission by taking a whole-of-city approach to reduce crime and restore law and order.
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The Justice Department today announced the Model Cities Initiative (MCI), a whole-of-city approach directing nearly $300 million in federal funding to transform public safety in America's cities. Through
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WASHINGTON, June 4 -- The U.S. Department of Justice issued the following news release on June 3, 2026:
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Making America Safe Again: DOJ to Award $300 Million to Model Cities Dedicated to Restoring Law and Order
The Model Cities Initiative will demonstrate the effectiveness of the Make America Safe Again Mission by taking a whole-of-city approach to reduce crime and restore law and order.
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The Justice Department today announced the Model Cities Initiative (MCI), a whole-of-city approach directing nearly $300 million in federal funding to transform public safety in America's cities. Throughthis initiative, two to four cities will be selected to receive awards supporting the implementation of comprehensive and innovative strategies to reduce crime, restore law and order, and enhance public safety. Proposals from qualifying cities are due September 1.
"This administration is leveraging every authority to ensure the safety of all Americans," said Acting Attorney General Todd Blanche. "The Model Cities Initiative will supercharge our law enforcement partners and restore the rule of law to America's neighborhoods, towns, and cities. Our message is clear: We will help those who help us Make America Safe Again."
Investments will be made in a variety of areas addressing public safety, behavioral health, and related staffing, equipment, and services with the goal of leveraging federal resources to build capacity, strengthen accountability, and deliver measurable reductions in crime that can serve as a model of innovation for replication nationwide. Eligible applicants include local government entities serving a population of at least 100,000.
The MCI initiative will support a range of allowable activities, including:
* Hiring and retention of sworn and non-sworn personnel directly engaged in or supporting violent crime reduction efforts.
* Purchase or lease of equipment, tools, or technology that reduce crime and restore law and order including but not limited to real-time crime centers; forensic and DNA tools; body-worn cameras; license plate readers; artificial intelligence systems; small unmanned aircraft systems (UAS) and counter-UAS; ballistic identification systems; and information technology upgrades.
* Training and professional development that support intelligence-led policing, violent crime investigations, crisis response, correctional practices that strengthen reentry outcomes, and coordination with state and federal law enforcement partners.
* Facility Costs including lease, rental, or renovation expenses for space directly used in program operations, such as service delivery sites, training facilities, real-time crime centers, or intelligence analysis centers.
* Mental health and substance use services that directly support prevention, crisis response, screening and early intervention, treatment, case management, and related services addressing issues linked to public safety outcomes, including services provided in correctional facilities and in the community.
* Reentry, transitional support, and recidivism reduction programs and services designed to reduce repeat offending, support transitions from custody, and promote successful reintegration into communities, including operational costs for county jails and state prisons that support reentry preparation.
* Victim services for American victims of crime, including, emergency assistance, case management, shelter and temporary housing, medical and dental care, advocacy, transportation, childcare, legal services, and employment assistance.
* Youth crime prevention and intervention services that address risk factors for juvenile delinquency and violence, including gang intervention and suppression programs.
Cities will apply through a whole-of-city approach. That means that city leaders, including the mayor, sheriff, county prosecutor, and others will work together to submit one application that proposes a persuasive vision of how this money can be awarded strategically throughout their city to improve law enforcement engagement, victim services, detention and reentry services, and preventive programs.
Additional information about the award is available at www.justice.gov/grants. The planned competition is a multi-phase process. DOJ anticipates making initial award decisions in late 2026. To apply for this award, please submit application materials to MCIapplications@usdoj.gov.
For any questions related to the MCI Call for Applications, you can send your inquiry to MCIquestions@usdoj.gov.
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Original text here: https://www.justice.gov/opa/pr/making-america-safe-again-doj-award-300-million-model-cities-dedicated-restoring-law-and
LLNL's Forensics Science Center Develops a New Capability to Detect Chemical Weapons
LIVERMORE, California, June 4 (TNSjou) -- The U.S. Department of Energy Lawrence Livermore National Laboratory issued the following news:
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LLNL's Forensics Science Center develops a new capability to detect chemical weapons
In the aftermath of suspected chemical attacks, investigators from the Organization for the Prohibition of Chemical Weapons (OPCW) step in to collect chemical, environmental and biomedical samples. Thorough forensic laboratory analysis of these samples is essential for proving what -- if any -- chemical agents were used and verifying their identities.
Researchers at
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LIVERMORE, California, June 4 (TNSjou) -- The U.S. Department of Energy Lawrence Livermore National Laboratory issued the following news:
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LLNL's Forensics Science Center develops a new capability to detect chemical weapons
In the aftermath of suspected chemical attacks, investigators from the Organization for the Prohibition of Chemical Weapons (OPCW) step in to collect chemical, environmental and biomedical samples. Thorough forensic laboratory analysis of these samples is essential for proving what -- if any -- chemical agents were used and verifying their identities.
Researchers atLawrence Livermore National Laboratory's (LLNL) Forensic Science Center (FSC) recently developed a new technique to detect pinacolyl alcohol (PA), a unique marker for the nerve agent Soman in environmental samples. The paper has been published in ACS Omega (https://pubs.acs.org/doi/10.1021/acsomega.6c00271), where it was given the Editor's Choice Award and featured in the journal's cover artwork.
Trusted to safeguard treaty compliance and support high-stakes investigations, LLNL's FSC is one of only two laboratories in the United States certified to receive and analyze real-world samples procured by OPCW sample collection teams. In order to maintain such accreditation, the FSC must successfully complete and pass proficiency tests administered yearly by the organization.
"It is our duty as a Lab not only to provide evidence, if any, for the use of a chemical weapon, but to provide all the analytical evidence to support our findings and in the process support OPCW's efforts in building a case against an alleged perpetrator," said Carlos Valdez, associate program leader for research and development at LLNL's FSC.
As is often the case, nerve agents such as Soman decompose in the environment, leaving low concentrations of potential markers that become difficult to detect. Even with powerful and state-of-the-art instrumentation available at the FSC, a recurring challenge for Valdez and his team is to find trace evidence of a specific marker for a chemical weapon in a sea of more abundant organic and inorganic chemicals present in the matrix.
For Soman, pinacolyl alcohol is a central marker, as it is needed for the synthesis of the nerve agent itself and is also a by-product of its degradation. The alcohol is not a natural chemical but synthetic in origin, making it a unique marker for this highly toxic nerve agent. Therefore, its detection in an environmental sample collected from an area of a suspected chemical attack strongly suggests the past use of the nerve agent.
However, because PA has a low molecular weight, its analysis and correct identification by gas chromatography-mass spectrometry (GC-MS) can be difficult, even at relatively elevated levels. In addition, liquid chromatography-mass spectrometry (LC-MS) analysis is generally not feasible since the chemical does not have ionizable properties.
In their work, the research team at LLNL have developed a method for the conversion of PA into a species that can be effectively detected by both methods, GC-MS and LC-MS, something that currently does not exist in the analytical chemist's toolbox.
"The fact that you can confirm the presence of a specific chemical, in our case PA, by two orthogonal analytical methods is extremely valuable," said Valdez. "It strengthens the official reports to be presented to the OPCW."
The advancement is monumental for proving the presence of Soman and strengthening the evidentiary case in chemical weapons investigations. The next step for the research team is to apply this technique to other alcohols commonly used as markers for various chemical weapons, potentially broadening its impact and utility in forensic analysis.
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Original text here: https://www.llnl.gov/article/54491/llnls-forensics-science-center-develops-new-capability-detect-chemical-weapons
Federal Reserve Bank of Richmond Issues Beige Book on June 3, 2026
WASHINGTON, June 4 -- The Federal Reserve Bank of Richmond issued the following Beige Book on June 3, 2026:
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Summary of Economic Activity
The Fifth District economy continued to grow at a modest rate. Consumer spending on retail, leisure activities, and travel increased modestly this cycle. Manufacturing activity picked up moderately, particularly for firms tied to data centers and defense spending; however, many producers also expressed concerns about input cost pressures coming from the rise in oil and gas prices. Financial and nonfinancial service providers saw modest growth in demand,
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WASHINGTON, June 4 -- The Federal Reserve Bank of Richmond issued the following Beige Book on June 3, 2026:
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Summary of Economic Activity
The Fifth District economy continued to grow at a modest rate. Consumer spending on retail, leisure activities, and travel increased modestly this cycle. Manufacturing activity picked up moderately, particularly for firms tied to data centers and defense spending; however, many producers also expressed concerns about input cost pressures coming from the rise in oil and gas prices. Financial and nonfinancial service providers saw modest growth in demand,but also noted that economic uncertainty was leading to more "cautions" behavior. Real estate markets were unchanged this cycle. Employment was also unchanged, on balance. Price growth picked up slightly but remained in a modest year-over-year range.
Labor Markets
Employment in the Fifth District was unchanged in the recent period. Some firms reported improvement in labor availability. A DC-based services company reported higher quality candidates due to recent federal workforce reductions. However, firms reliant on skilled trades labor continue to report challenges, with an architecture firm noting an inability to complete a construction project due to worker shortages. Several firms reported employees leaving for higher-paying or more stable positions. Multiple contacts reported compensation adjustments to support their employees facing increased costs of living. For example, a manufacturer provided gas bonuses to help offset increased fuel costs, while a commercial construction firm is raising salaries for its workers.
Prices
Prices growth picked up marginally this cycle but remained within a moderate year-over-year rate. Recent surveys reported that service sector firms' prices received continued to rise between three and four percent year-over-year. Service sector firms reported a spike in non-labor input costs, which rose to over five and a half percent. Manufacturing firms reported both prices received and prices paid remained relatively the same. Survey participants across all sectors noted increases in oil prices while a few noted specific tariff related increases for items like foam and steel.
Manufacturing
Manufacturing activity increased moderately in the recent period, although firms expressed significant concerns about current economic conditions. Contacts reporting growth tended to be in industries tied to data centers or defense contracting. Many firms reported increased costs due to the conflict in the Middle East. A wood manufacturer experienced price increases for chemicals while a printer reported multiple suppliers raising prices upwards of 12 percent within a three-week period. An asphalt producer noted higher trucking and material costs. Several firms in other manufacturing sectors reported weakening demand amid consumer caution. An equipment manufacturer for the plastics industry said customers were delaying capital investments due to expected oil shortages. Coffee manufacturers reported softening demand due to customers trading down to lower quality products.
Ports and Transportation
Loaded cargo volumes were mixed across the Fifth District as some maritime ports saw a slight uptick in both imports and exports while others saw a decrease since the last cycle. Despite the variation in cargo volume, blank sailings (ships skipping ports of call) increased across the board and all ports noted a significant decrease in empty container exports, signaling that carriers do not anticipate a near-term uptick in demand. While cargo volumes at Fifth District ports were not particularly affected by trade disruptions in global conflict zones, port contacts noted that skyrocketing bunker fuel costs will have a downstream effect on consumer prices and the ports themselves received notices about 30 percent price increases on diesel and lubricants used to operate machinery. One contact noted that exporters of heavy, lower-value ag commodities in the Southeast have held back product because fuel surcharges have made the value of the cargo unsustainable to ship. While spot rates increased, fuel costs have kept margins very slim for trucking firms and contacts observed a substitution shift toward short-haul rail to and from ports even though it is typically more costly than trucking.
Retail, Travel, and Tourism
Consumer spending increased modestly this cycle with an equal number of firms citing steady to increasing demand. Big-ticket sales, however, were down overall. Fifty percent of respondents indicated that they increased their prices in recent weeks, with some contacts explicitly mentioning fuel costs as a major concern for both customers and their input costs. A Fifth District fuel distributor whose price increased 125 percent in the last month warned that "everything gets to the consumer with diesel" and that was going to put upward pressure on prices. One furniture retailer noted that they were receiving fifty percent fuel surcharges on domestic freight along with tariff surcharges, which were extremely hard to pass along via retail prices. Despite rising fuel costs, hotel occupancy in high-density parts of the District saw unexpected improvement this cycle with a resurgence of not only government and business travel but leisure tourism as well.
Real Estate and Construction
Residential real estate remained the same as last cycle. Listings continued to hit the market while buyer reservations continued amid economic uncertainty and elevated interest rates. Multiple agents noted the homes that were selling were priced correctly and move in ready. A Virginia agent noted that buyers were willing to shop around for better interest rates and lender benefits. Gas prices were impacting brokers as well, with one agent saying that they raised their fees to cover their cost to show homes.
Commercial real estate activity remained unchanged. Class A office space and retail remained strong. The medical office market saw continued growth in new facilities. Manufacturing leasing and sales seemed to pause this cycle amid concerns about tariffs and energy prices. Builders in both sectors noted their concerns with oil prices potentially delaying the start of new projects. A broker in Maryland noted a retail client is pushing off re-paving their parking lot this year due to the increase in the cost for asphalt. A Virginia builder noted concerns that if diesel prices stay elevated, they would have to pass those costs onto customers.
Banking and Finance
Financial institutions reported a modest increase in overall demand for loans, primarily in their commercial real estate portfolios and pipelines. Although many businesses were being described as "cautious," they were still moving forward with projects and fulfilling immediate needs. Consumer loan demand remained stable with most activity found within the home equity line of credit portfolio. Institutions reported stable deposit balances with continued rate pressure and competition within markets to gain any increases in deposit levels. Loan delinquency rates continued to remain stable with no changes noted in the credit quality of loan applicants.
Nonfinancial Services
Nonfinancial service providers reported modest growth in revenue and demand for their services, although many continued to note that economic uncertainty still was a top concern of their customers and themselves. A human resources consulting firm reported that they have observed clients factoring this uncertainty into their businesses and have slowed hiring for new roles and projects as a result. The HR firm also noted that their own employees seemed reluctant to leave "something stable" for new opportunities. An architecture design firm noted fuel prices were starting to impact their subcontractors, and they expected if fuel prices continued to move upwards, those trade partners would pass those increases back to them.
For more information about District economic conditions visit: https://www.richmondfed.org/research/data_analysis.
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Original text here: https://www.federalreserve.gov/monetarypolicy/beigebook202605-richmond.htm
Federal Reserve Bank of New York Issues Beige Book on June 3, 2026
WASHINGTON, June 4 -- The Federal Reserve Bank of New York issued the following Beige Book on June 3, 2026:
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Summary of Economic Activity
Economic activity in the Second District increased slightly after a sustained period of weakness. Manufacturing and distribution activity rose strongly, while service sector activity declined modestly. Employment edged up slightly, and wage growth eased somewhat but remained modest. The pace of selling price increases picked up to the high end of the moderate range, and input prices rose strongly, driven by a spike in fuel and energy costs. Consumer spending
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WASHINGTON, June 4 -- The Federal Reserve Bank of New York issued the following Beige Book on June 3, 2026:
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Summary of Economic Activity
Economic activity in the Second District increased slightly after a sustained period of weakness. Manufacturing and distribution activity rose strongly, while service sector activity declined modestly. Employment edged up slightly, and wage growth eased somewhat but remained modest. The pace of selling price increases picked up to the high end of the moderate range, and input prices rose strongly, driven by a spike in fuel and energy costs. Consumer spendingincreased moderately boosted by solid retail sales. Housing market activity picked up modestly with the spring selling season. Businesses expected modest improvement in conditions in the months ahead.
Labor Markets
On balance, employment edged up slightly. Head counts increased among manufacturing, personal services, construction, and wholesale firms, while employment declined modestly in the finance, business services, and information sectors.
Labor demand picked up slightly, though a low-hire, low-fire environment was still the norm. Sales and finance professionals remained in high demand, while hiring of entry-level tech workers was at a low, in part due to employers automating repetitive tasks. An employment agency in upstate New York noted a surplus of entry level workers on the market. A New York City area technical staffing agency reported that hiring processes had become extended, with candidates going through several months and multiple rounds of interviews before being hired. There were a few reports of layoffs across the District.
Wage growth eased somewhat and remained modest. Some contacts noted that New York State's minimum wage was putting upward pressure on labor costs and creating competitive asymmetries between states. Contacts anticipated some easing in the pace of wage growth in the coming months.
Prices
The pace of selling price increases picked up to the high end of the moderate range, and input prices rose strongly. While tariffs continued to put upward pressure on prices, contacts across several sectors noted that rising fuel and energy costs had eclipsed tariffs as a driver of price increases, significantly impacting business operations and dampening profitability. Rising energy prices drove transportation and other expenses higher for many firms. A food manufacturer in the Hudson Valley noted that higher energy costs were pushing up the cost of many inputs, including packaging, ingredients, equipment, and parts, while elevated fertilizer costs were pushing up food prices. Apple growers in New York State noted that sharply rising fertilizer costs may limit fertilizer use, and combined with an early heat wave and late frost, this year's harvest may be greatly reduced. A metal product manufacturer noted continued increases in prices for metals, including aluminum and steel. Contacts expected pricing pressures to intensify in the coming months.
Consumer Spending
Consumer spending grew moderately, and retail sales were solid. The operator of a large shopping mall reported that higher-end tenants were seeing particularly strong demand for luxury goods, while mid- to lower-end tenants experienced more subdued sales. Similarly, a department store reported that strong sales were buoyed largely by affluent consumers, with sales of accessories--especially wristwatches--particularly strong. By contrast, auto dealers in upstate New York noted a marked weakening in new vehicle sales, reflecting ongoing affordability issues and high gas prices. Manufacturers have responded by expanding incentive programs to boost demand, including subsidized interest rates. Used car sales picked up modestly, in part reflecting substitution from new cars to more affordable used cars.
Manufacturing and Distribution
Manufacturing activity grew strongly, with a substantial increase in new orders. One contact reported increased demand for automated equipment as customers sought to improve manufacturing efficiency. One firm noted that tariff uncertainty and rising energy costs were causing business customers to rethink their strategies, impacting their demand patterns. Supply availability continued to worsen somewhat, and delivery times lengthened significantly. Wholesale and distribution firms reported a solid increase in business activity. A shipping contact noted robust import volumes across a wide range of goods, even amid rising shipping costs, extended transit times, and less dependable delivery schedules. A water transportation company noted having paused domestic shipping investment due to Jones Act waivers. Manufacturers grew more optimistic about the outlook.
Services
Activity in the service sector contracted modestly, after an extended period of steeper declines. Activity held steady in the health care sector, and declined in the information, professional business services, and education sectors. Firms in the service sector expected only little improvement in the coming months.
Tourism activity in New York City declined in the spring among both day trippers and overnight visitors, though conditions improved somewhat in recent weeks. Attractions have continued to report soft demand, though hotel rates and occupancy trended upward, driven by a notable jump in luxury bookings. Optimism about the upcoming FIFA World Cup's economic impact has been tempered by weaker-than-anticipated ticket sales and advance hotel bookings.
Real Estate and Construction
Housing market activity picked up modestly with the spring selling season. Although inventory increased slightly across the District, it remained low relative to historical norms and continued to constrain sales. Housing demand strengthened in Upstate New York, with open houses well-attended and sales contracts increasing across all price points, particularly in the upper half of the market. In New York City's suburbs, bidding wars remained prevalent, and half of Long Island sales closed above asking price. With solid demand and persistently limited supply, prices continued to edge upward. A New York City contact noted that rental markets remained exceptionally tight, with record-high rents expected to climb even more steeply through the year, as many potential buyers remained on the sidelines amid higher mortgage rates.
Commercial real estate markets were strong, with leasing volumes in Manhattan's office market near record highs. Demand among AI-related firms was quite strong--though leases for such firms were shorter than typical--and year-to-date leasing volumes for such businesses have already surpassed last year's total. Vacancy rates for class A office space recovered to pre-pandemic levels, and new construction has been spurred by limited remaining supply. By contrast, rents fell amid a soft industrial market, where high ocean and truck shipping costs discouraged demand for warehousing and distribution space. Construction activity picked up to a modest pace, after an extended period of decline.
Banking and Finance
Activity in the broad finance sector grew moderately after a period of sluggishness. Small- to medium-sized regional banks reported a pickup in residential mortgage demand, although demand for consumer loans, business loans, and commercial mortgages was flat or down slightly. A banker from New York noted that high interest rates for commercial customers were suppressing demand. Contacts reported that credit standards continued to tighten slightly for all types of loans. Deposit rates edged slightly lower. While delinquency rates held steady overall, one regional bank contact reported that delinquency rates had risen for residential mortgages.
Community Perspectives
Contacts across nonprofits report significant workforce challenges marked by tight labor availability, rising costs, and pressure to operate with leaner staff. Difficulty hiring and retaining employees persists, with turnover, wage constraints, and burnout particularly acute in caregiving, social assistance, and emergency services. Several contacts emphasized that salaries have not kept pace with rising living costs, forcing some nonprofit workers to rely on the very services their organizations provide and making it difficult for others to remain in their communities. Nonprofit organizations noted that technology and AI were reshaping staffing decisions, sometimes reducing hiring needs while introducing new skill requirements.
For more information about District economic conditions visit: https://www.newyorkfed.org/regional-economy.
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Original text here: https://www.federalreserve.gov/monetarypolicy/beigebook202605-new-york.htm
Federal Reserve Bank of Chicago Issues Beige Book on June 3, 2026
WASHINGTON, June 4 -- The Federal Reserve Bank of Chicago issued the following Beige Book on June 3, 2026:
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Summary of Economic Activity
Economic activity in the Seventh District increased slightly over the reporting period and contacts expected little change in activity in the coming year. Manufacturing demand rose moderately; consumer spending, employment, and construction and real estate activity increased slightly; business spending was flat on balance; and nonbusiness contacts saw no change in economic activity. Prices rose rapidly, wages were up modestly, and financial conditions
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WASHINGTON, June 4 -- The Federal Reserve Bank of Chicago issued the following Beige Book on June 3, 2026:
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Summary of Economic Activity
Economic activity in the Seventh District increased slightly over the reporting period and contacts expected little change in activity in the coming year. Manufacturing demand rose moderately; consumer spending, employment, and construction and real estate activity increased slightly; business spending was flat on balance; and nonbusiness contacts saw no change in economic activity. Prices rose rapidly, wages were up modestly, and financial conditionstightened slightly. Farm income expectations for 2026 were unchanged.
Labor Markets
Employment rose slightly over the reporting period and contacts expected a similar pace of hiring over the next 12 months. Contacts largely reported stable labor market conditions, continuing to characterize the environment as low-hire, low-fire. That said, there were some areas of growing labor demand, particularly in manufacturing where contacts at temporary employment agencies said hiring had increased recently and some manufacturing contacts noted difficulty in hiring skilled workers. Wages and benefits costs both rose modestly. While overall wage growth was at a similar rate as the prior period, one metals manufacturer said they had to increase the frequency of their wage increases to keep up with market trends.
Prices
Prices rose rapidly overall in April and early May and contacts expected a moderate pace of growth over the next 12 months. Producer prices increased at a strong pace. Nonlabor input costs rose rapidly overall, led by higher costs for inputs whose supply chains are linked to the conflict in the Middle East. Contacts highlighted increased prices for energy, shipping, and raw materials like steel and chemicals. One manufacturer reported successfully passing on higher material and shipping costs to customers. Consumer prices also rose rapidly, with many contacts citing higher gasoline prices as the main driver. One retail industry analyst said tariff refunds resulting from the recent Supreme Court ruling were unlikely to lead retailers to lower prices.
Consumer Spending
Consumer spending rose slightly overall during the reporting period. Nonauto retail spending edged up. Sectors with solid growth included apparel and computers. Sales were also robust for some businesses that cater to higher-income consumers such as landscaping and golf simulators. Leisure and hospitality spending increased slightly. Spending at fast food restaurants picked up. Population centers in the District saw demand in the hospitality sector increase slightly. New light vehicle sales ticked up. Dealers noted that higher gas prices were leading consumers to pay more attention to fuel economy in showrooms. Meanwhile, used light vehicle sales increased moderately. Several contacts expressed concern that higher gas prices would cut into discretionary spending.
Business Spending
Business spending was flat on balance in April and early May. Capital expenditures were unchanged, but contacts expected a slight increase in outlays over the coming year. Several contacts across industries reported that uncertainty over the economic outlook had led their customers to slow or pause capital spending, though they observed that data center investments appeared to be unaffected. Demand for truck transportation decreased slightly. Freight rates rose significantly in line with rapid increases in fuel prices and many contacts reported their suppliers were introducing freight surcharges. Retail inventories outside of autos were comfortable, vehicle stocks were unchanged at a low level, and manufacturing inventories were a little low.
Construction and Real Estate
Construction and real estate demand increased slightly overall. New residential construction edged down and home renovation activity remained soft. Contacts said that new home buyers were choosing cheaper options for cabinets, countertops, and other home complements. Residential real estate demand increased modestly, helping to make up for a slow early-spring selling season. Contacts thought sales growth was being held back in part by economic uncertainty and potential buyers facing lower real incomes due to tariffs and higher energy prices. Home prices were up overall. Nonresidential construction increased slightly. Most growth continued to come from data center and government infrastructure projects. Otherwise, contacts noted some reluctance to start projects because of higher energy prices and elevated uncertainty. Commercial real estate activity increased slightly, led by stronger sales in the government, medical, and education sectors. Vacancy rates declined some for small retail spaces.
Manufacturing
Manufacturing demand increased moderately in April and early May. Chemicals, plastics, and rubber production increased slightly. Primary metals wholesalers and manufacturers reported a modest uptick in demand, driven in part by the defense sector and customers supporting data center construction. Fabricated metals production was flat on balance, with contacts reporting stronger orders from the defense industry but a decrease in sales to the agricultural, automotive, and residential construction industries. Machinery sales rose moderately. One contact in heavy machinery reported that data center construction was driving sales, and that equipment fleet rental rates had risen as a result. Auto production was flat on balance, though some contacts saw the potential for supply chain problems, including for semiconductors and petroleum-based products, to curtail production in the future. Heavy truck production rose slightly.
Banking and Finance
Financial conditions tightened slightly overall in April and early May; while bond values increased a bit, equity values rose significantly, and volatility fell, business and consumer loan rates were up and terms tightened. Contacts gave varying reports on the direction of business loan demand, which was flat overall. Business loan quality edged down and rates rose modestly. One contact reported some concern about the potential for loan quality deterioration in the EV-related auto space. Consumer loan demand decreased modestly, in part due to lower auto loan volumes. Credit card and home loan activity was stable. Consumer loan quality decreased modestly. Several contacts noted elevated uncertainty over the future direction of short run interest rates.
Agriculture
Expectations for 2026 District farm income were little changed over the reporting period. Although weather conditions and crop planting varied across the District, planting was largely on schedule and most crops were off to a good start. Fertilizer and fuel prices remained elevated. One contact reported buying diesel "hand to mouth" instead of by the truck load due to elevated prices and uncertainty about future prices. A modest number of acres switched from corn to soybeans, as corn requires more fertilizer. Contacts indicated fertilizer costs would be a greater concern in the fall and winter if higher prices persist as that is when prices tend to be locked in for the subsequent growing season. Corn, soybean, and wheat prices rose. Dairy prices generally increased, cattle and hog prices were flat, and egg prices decreased.
Community Conditions
Community, nonprofit, government and other nonbusiness contacts reported little change in economic activity over the reporting period, though they expressed rising concerns about higher prices related to the conflict in the Middle East. State and municipal contacts worried about a downturn in revenues if consumers curtailed discretionary spending to accommodate higher prices for gas and other necessities. Small business intermediaries reported greater uncertainty on the part of their clients, who were increasingly reluctant to take on debt to start or grow their businesses. Social service organizations said that local funders were adapting to changes and delays in federal funding by encouraging grantees to collaborate to more efficiently with one another to meet community needs, even as contacts also noted an increase in the "newly needy."
For more information about District economic conditions visit: https://chicagofed.org/cfsec.
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Original text here: https://www.federalreserve.gov/monetarypolicy/beigebook202605-chicago.htm
