The US economy is walking a tightrope between cautious growth and tariff-fueled uncertainty, according to the Federal Reserve’s latest Beige Book report. While activity improved slightly in recent weeks, businesses described the outlook as "neutral to slightly pessimistic" – think of it as the economic equivalent of a Gen Z shrug emoji. 🤷♂️
Here’s the tea: Rising import tariffs are pushing prices upward across industries, with companies warning these costs could hit consumer wallets harder by late summer. The Fed also noted "very slight" job growth, as employers delay major hiring decisions amid trade policy whiplash. Even immigration enforcement policies are creating headaches for some businesses, per the report.
Fed officials like Dallas’ Lorie Logan are hitting pause on rate cuts, arguing higher-for-longer rates might be needed to combat inflation risks from tariffs. Meanwhile, President Trump continues his public feud with Fed Chair Jerome Powell, recently floating – then denying – rumors about firing him. 🎢
The big debate? Whether to cut rates at July’s meeting to support jobs vs. keeping them steady to avoid inflation flare-ups. With unemployment claims ticking up and tariffs threatening price stability, this economic drama could rival your favorite streaming series for plot twists. 📺
