The report, based on data from all 12 regional Fed banks, showed employment rising without significant pressure on wages. Price growth in all districts remained stable or slowed compared to the previous reporting period.

"Respondents generally expect economic growth to continue in the coming months, but some districts report elevated uncertainty about the fuel price outlook," the Fed report stated.

Inflation expectations varied by region. Some respondents expected inflation to remain at current levels, while others expected it to slow, in part due to lower fuel prices. At the Fed's June 16-17 meeting, about half of the regulator's members forecast at least one rate hike before the end of 2026 in response to elevated inflation. Kevin Warsh did not disclose his own view on the rate path, but he repeatedly stated his commitment to restoring price stability and confirmed that the central bank has the necessary tools to achieve this goal. He reiterated this position during his testimony before Congress on Tuesday and Wednesday.

Fuel prices fell last month following the preliminary peace agreement between the US and Iran, which, according to recent data, contributed to lower inflation. The resumption of hostilities this month led to a rise in oil prices and raised new inflation concerns.