Fed’s Beige Book: The outlook worsens due to uncertainty spurred by tariffs

Commonly known as the Beige Book, this report is published eight times per year. Each Federal Reserve Bank gathers anecdotal information on current economic conditions, most of which focuses on the economy’s general overview, inflation, and employment.

Beige Book: Economic activity is largely unchanged; wage growth slows, and inflation pressures persist amid tariff-driven cost increases

The Fed’s April Beige Book revealed little change in economic activity, and worries about tariffs worsened the outlook in several regions. Consumer spending remains mixed, while the labor market has shown signs of cooling after stalling or edging lower in many Fed districts.

Wage growth decelerated in some areas, despite improved labor availability. Regarding inflation, input costs rose due to tariffs, with firms passing on costs of facing margin squeezes.

The Beige Book added that businesses are preparing for more uncertainty, primarily due to tariffs impacts and weaker services demand.