Fed’s Beige book flags 'pervasive' uncertainty with tariffs in flux
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The news: “Pervasive” uncertainty over President Donald Trump’s shifting tariff plans loomed large across the US in recent weeks, the Federal Reserve said Wednesday (Thursday AEST) in its Beige Book report.
Economic activity was little changed since the previous report, it said, with most districts reporting slight to modest declines, and only five of them reporting slight growth.
Prices increased across districts, with many firms receiving notices from suppliers about rising costs and planning to pass higher prices onto consumers.
Consumers rushed to buy vehicles and nondurable goods ahead of price increases, though non-auto spending declined.
What they said: “Uncertainty around international trade policy was pervasive across reports,” it said, referring to the qualitative data collected from each of the Fed’s 12 regional districts.
“The outlook in several Districts worsened considerably as economic uncertainty, particularly surrounding tariffs, rose.”
Employment was “little changed to up slightly,” with declines in government roles and at organisations receiving government funding.
“Several districts reported that firms were taking a wait-and-see approach to employment,” and there were “scattered reports of firms preparing for layoffs.”
The numbers: The word “tariff” appeared 107 times in the report, according to Bloomberg. That was more than double the prior edition—while “uncertain” was used 89 times.
The report covers data collected through 14 April.
The sources: Federal Reserve , Bloomberg
