Fed Beige Book “Tariff uncertainty, Shakes US regional economic outlook”

The US Federal Reserve monitoring the impact of tariffs (Source: Federal Reserve)

According to the Beige Book report released on 24 (local time) by the United States Federal Reserve (Fed), the economic activity of the US is generally stable, but the economic outlook of several regions is clearly deteriorating due to the impact of President Donald Trump's tariff policy.

The Fed evaluated in the report, “Employment still maintains resilience, and price increases are mostly modest or at a stable level.” However, they simultaneously diagnosed “There is considerable uncertainty regarding international trade policy,” and added that the initial impact of the retaliatory tariffs announced by President Trump is already being detected in regional economies.

This report, based on data from the business and labor markets of 12 Federal Reserve districts, is drawing attention from the market as it may also affect the Fed's future interest rate policy. In particular, if the protectionist stance of the Trump administration is prolonged, fears of an economic slowdown are likely to spread more widely, it was assessed.