The national economic survey report released by the Federal Reserve on the 4th indicates that uncertainty regarding the economy and policies remains high, adversely affecting businesses and households, while tariff increases bring pressure on costs and prices.
According to the 'Federal Reserve Act', the United States is divided into 12 Federal Reserve Districts, each with a Federal Reserve Bank. This report is compiled based on the latest survey results from the 12 Federal Reserve Banks, also known as the 'Beige Book'.
The report indicates that since late April, overall economic activity in the United States has slightly declined, with half of the Federal Reserve Districts experiencing mild or moderate declines in economic activity. Uncertainty regarding the economy and policies remains high across all Federal Reserve Districts, leading to hesitancy and caution in business and household decision-making. Manufacturing activity has slightly decreased. Consumer spending is mixed; most Federal Reserve Districts show slight declines or no changes, but some Districts anticipate increased spending on items affected by tariffs.
The report states that, overall, the outlook remains slightly pessimistic and uncertain, relatively unchanged compared to the previous report.
In terms of employment, most Federal Reserve Districts report little change in employment conditions compared to before, but labor demand has decreased across all Federal Reserve Districts, reflected in reduced working hours and overtime, hiring freezes, and planned layoffs.
In terms of prices, there has been a slight increase since late April. There is widespread expectation across the Federal Reserve Districts that costs and prices will rise at a faster pace in the future. Some Federal Reserve Districts anticipate significant or substantial cost increases. All Federal Reserve Districts report that tariff increases are putting upward pressure on costs and prices.
The Federal Reserve publishes the 'Beige Book' eight times a year, assessing the economic situation across the United States through the Federal Reserve Banks. This report serves as an important reference for the Federal Reserve's monetary policy meetings. The next Federal Reserve monetary policy meeting will be held on June 17-18.
Original Title: (Federal Reserve 'Beige Book': Economic Uncertainty in the U.S. Remains High, Tariffs Push Up Prices)