Overview
- The Fed reported economic activity was little changed and employment largely stable even as more employers reduced headcount through layoffs and attrition.
- Contacts cited weaker demand, elevated uncertainty and, in some cases, investment in artificial intelligence as reasons for trimming staff, with hiring described as muted.
- Businesses across many Districts reported tariff-driven increases in input costs, with mixed pass-through to final prices.
- Several Districts highlighted strained labor supply in hospitality, agriculture, construction and manufacturing linked to recent immigration policy changes.
- With BLS releases delayed by the government shutdown, the Beige Book and private gauges carry extra weight ahead of the Oct. 28–29 meeting, as markets price in another rate cut and officials appear divided.