Overview

• The Federal Reserve’s Beige Book reports slight to moderate activity declines in half of its districts, with only three regions noting growth.
• Elevated uncertainty over tariffs has led businesses to delay capital expenditures, adjust hiring plans and hesitate on new contracts.
• Tariffs have pushed input costs higher, and many firms plan to pass these increases on to consumers by midyear.
• Companies in several regions are reshoring operations or diversifying suppliers to mitigate the risks of unpredictable trade policies.
• Fed officials, including Chicago Fed President Austan Goolsbee, have kept rates unchanged since December and signal potential short-term rate cuts within the next 12 to 15 months.