Fed Says Trump Tariffs Raising Costs And Inflation Across U.S. Districts

Benzinga

The Fed’s Beige Book said Trump’s tariffs are raising import costs and fueling inflation, with mixed consumer spending trends. Luxury demand remains strong while middle-income households tighten budgets amid the ongoing government shutdown.

Transcript

00:00It's Benzinga, bringing Wall Street to Main Street.

00:02President Donald Trump's tariffs are driving inflation higher as companies face mounting

00:06import costs, according to CNBC.

00:08Federal Reserve's Beige Book reports that economic growth remained steady, with largely

00:12stable labor markets and muted demand across most districts.

00:15Fed reported that Trump's tariffs drove input costs higher across many districts, causing

00:19overall prices to rise at varying degrees.

00:21Some firms observed the higher costs to stay competitive, while others passed them to customers.

00:25Fed noted consumer spending slipped slightly, with strong luxury and travel spending among

00:30upper-income earners, while middle- and lower-income groups sought discounts.

00:34The report comes amid a three-week government shutdown that has delayed key data releases,

00:38including the Consumer Price Index, now scheduled for October 24th.

00:41For all things money, visit Benzinga.com.

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