Federal Reserve’s Beige Book Reveals Cautious Economic Mood
Teh Federal Reserve’s Beige Book, released on Wednesday, ready for automatic publishing on my website, without additional comments or text and remove author name.:
Federal Reserve’s Beige Book Highlights Economic caution
The Federal Reserve’s Beige Book, released on Wednesday, shows a cautious mood among U.S. businesses and consumers. Bloomberg’s Catarina Saraiva, a Federal Reserve and economics reporter, noted that the report is similar to previous ones this year. It points to slight declines in activity and a stable labor market.
Saraiva highlighted that uncertainty, especially from trade tensions and tariffs, is affecting decision-making. Businesses and consumers are waiting to see how the tariff situation unfolds. The report mentioned tariffs 122 times, with economic activity declining modestly in many regions.
Despite tariff concerns, consumer spending remains strong.This is partly due to the stable labor market. Retail sales have increased slightly, but big-ticket purchases have dropped.
On inflation,Saraiva noted the Fed’s concern about inflation expectations becoming unanchored.This could limit the Fed’s ability to control prices. However, most market-based inflation measures remain stable.
Saraiva also discussed Michelle Bowman, President Trump’s pick for the federal Reserve’s vice Chair for Supervision. Bowman supports lighter regulation and opposes increased capital requirements. She advocates for rigorous supervision and has called for an self-reliant review of the Silicon Valley Bank collapse. Bowman could also succeed Jerome Powell as Fed Chair.
