Beige book shows little or no growth across most US regions, tariff inflation spreads
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The news: US economic activity saw “little or no” growth across most of the country in recent weeks, and tariff-related price pressures are intensifying across nearly all districts, according to the Federal Reserve’s Beige Book.
Most of the twelve Federal Reserve districts reported flat to declining consumer spending, as “for many households, wages were failing to keep up with rising prices,” the report said.
All districts saw price increases, with ten reporting “moderate or modest” inflation and two experiencing “strong input price growth.”
What they said: “Most of the twelve Federal Reserve Districts reported little or no change in economic activity since the prior Beige Book period—the four Districts that differed reported modest growth,” the report said.
Nearly all districts noted tariff-related price increases,” especially on the prices of inputs. Businesses raised prices to compensate, at least partially, for rising costs.
Eleven districts reported “little or no net change” in overall employment levels, while one described a “modest decline.”
The report was compiled by the Philadelphia Fed using information gathered on or before 25 August, ahead of the Fed’s September interest rate meeting.
The source: US Federal Reserve
