The Federal Reserve indicated that US economic activity has increased at a slight to modest pace in recent weeks, with employment levels showing little change across most districts.

The central bank released its Beige Book report on Wednesday, a compilation of surveys from regional business contacts, which stated that prices have generally risen at a modest rate.

The Fed noted, "Some contacts attributed these cost increases to the Middle East conflict, while others cited tariffs. Consumer prices continued to rise, with some districts indicating that contacts are seeing their customers become more price-sensitive."

The report is based on information collected by the 12 regional Federal Reserve Banks up to July 6th and was compiled by the Federal Reserve Bank of Chicago.