@junshao

According to the latest Federal Reserve Beige Book report, the U.S. economy has slightly declined over the past six weeks, primarily due to a slowdown in hiring activity and increased caution among businesses and consumers over concerns about tariff-driven price increases. The report states: • All 12 Federal Reserve districts recorded high levels of economic and policy uncertainty, leading to more cautious decision-making by businesses and consumers. • Labor demand has decreased, with reduced working hours and overtime, and some areas have paused hiring or are planning layoffs. • Layoffs have occurred in some regions but have not yet spread nationwide. • Inflation is rising at a moderate pace, but many businesses anticipate faster price increases in the near future, particularly due to higher import tariffs. • Some businesses may reduce profit margins to maintain prices, while others plan to impose temporary fees or surcharges in the next three months to offset costs.

0 reply

0 recast

1 reaction