The latest Federal Reserve study of economic conditions reveals that businesses that did not raise prices or pass on the impact of tariffs to their customers are likely to take a hit on their profit margins.
What Happened: The Beige Book is a Federal Reserve System publication about current economic conditions across the 12 Federal Reserve Districts.
According to the central bank, this publication characterizes regional economic conditions and prospects based on a variety of qualitative information gathered directly from each District’s sources. Reports are published eight times per year.
The latest edition of the Beige Book, covering the period from late May through early July, highlighted that most districts reported softer consumer spending as uncertainty weighed on consumers and business leaders. Also, ten out of twelve districts expect future economic activity to either flatline or soften in the coming months.
“Prices increased across Districts, with seven characterizing price growth as moderate and five characterizing it as modest, mostly …