The Federal Reserve’s Beige Book report, prepared in advance of the upcoming Federal Open Market Committee (FOMC) meeting on September 21-22, indicated that economic activity decelerated from early July through the end of August. The pullback was largely driven by concerns about the Delta variant as well as supply chain disruptions and labor shortages. Nevertheless, most of the Federal Reserve Bank Districts remained optimistic about the near-term outlook and reported improving labor market trends. The Districts reported rising inflationary pressures (ranging from moderate to strong), and several Districts anticipate significant price hikes in the months ahead.