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Fed Report Sees Optimism About Growth, but Growing Concerns About Tariffs - ABI

A Federal Reserve report released yesterday found that businesses were still optimistic about the economy’s growth trajectory, but indicated concerns that tariffs would continue to push up costs, the Wall Street Journal reported. The majority of the Fed’s 12 districts reported modest to moderate economic growth at the beginning of fall, the Fed said in its latest roundup of anecdotal information about regional economic conditions known as the beige book. The report was based on data collected on or before Oct. 15 and highlighted uncertainties, particularly among manufacturers, regarding the impact of labor shortages and trade disputes. The Trump administration has imposed tariffs on billions of dollars-worth of imports, leading to retaliatory tariffs on U.S. goods. For one trucking contact in the Cleveland Fed district, tariffs have meant price increases for pallet jacks, tires, and packaging material. Many businesses have or expect to pass along tariff-related price increases to customers, but in some cases, are unable to, the report said.

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