Economic Activity Mostly Unchanged

The Federal Reserve's latest Beige Book released on Wednesday indicated that U.S. economic activity showed "little or no change." While four districts reported modest growth, the majority remained stagnant. The Fed noted that "contacts frequently cited economic uncertainty and tariffs as negative factors" affecting business conditions.

Employment Trends and Hiring Hesitation

Employment data revealed that eleven districts described "little or no net change" in job markets. Seven districts reported that companies were hesitant to hire due to "weaker demand or uncertainty." Additionally, two districts saw increased layoffs, while most districts observed a rise in job seekers.

Price Increases and Tariff Impact

Prices rose across all districts, with ten reporting "moderate or modest" growth and two experiencing "strong input price growth" that exceeded selling price increases. The Fed emphasized that "nearly all Districts noted tariff-related price increases," particularly affecting input costs significantly.