‘Beige Book’ Shows An Economy On The Brink Of Trump’s Tariffs | Global News Avenue

The Fed’s “Beige Book” report on the economy was filmed in “uncertainty” and similar terms as businesses prepare for the impact of President Donald Trump’s trade war.

The report was released on Wednesday, indicating that the overall economy is still growing “slightly”. Still, business and civic leaders are “uncertain”, “tense” and “worry” about the impact of Trump’s policies, especially his tariffs on Canada, Mexico and China on Tuesday. Trump’s plan to deport immigrants is another source of concern as several business leaders say their employees skip jobs for fear of being deported.

The beige book is the latest in a series of reports and surveys to show anxiety about how tariffs and other Trump policies will affect the economy. Experts say tariffs can increase living costs and slow down economic costs, and uncertainty itself can Dissuading investment and recruitment.

“Most regions’ links expect potential tariffs to be invested will lead them to raise prices and report reports of companies leading up to price increases in isolation,” the report said.

In the Dallas area, manufacturers are particularly nervous. “The interviewees said the back and forth tariff speeches were stressful and the intensification of uncertainty was highly destructive,” the report said.

In Boston, “as wholesale food prices soar, prices rose on average, and contacts expressed concerns that tariffs would lead to greater price pressure moving forward.”

In Philadelphia, “employment continues to grow, although companies are even less willing to hire in amid economic uncertainty.”

Overall, the report paints an instability in the economy amid Trump’s trade war and rapid cuts in federal employees and plans.

“This change brings great uncertainty to businesses and consumers and raises inflation expectations,” Anthony Fonash, an economist at Moody’s Analytics, wrote in a comment. “Our baseline requires a lower but still steady growth over the coming months. However, the economy seems increasingly fragile, especially since asset markets (with the valuation of their bubbles) seem to be vulnerable to considerable correction.”