Fed Beige Book- labor market weak, growth declining and prices rising

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On inflation, the report described prices as rising “at a moderate pace.”

“There were widespread reports of contacts expecting costs and prices to rise at a faster rate going forward. A few Districts described these expected cost increases as strong, significant, or substantial,” it said. “All District reports indicated that higher tariff rates were putting upward pressure on costs and prices.”

There were disparities, though, over expectations for how much prices would rise, with some businesses saying they might reduce profit margins or add “temporary fees or surcharges.”

“Contacts that plan to pass along tariff-related costs expect to do so within three months,” the report said.

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