On the 3rd, the U.S. Federal Reserve released its national economic situation survey report, showing that from mid-July to the end of August, prices in all Federal Reserve Districts across the United States rose, with the increases related to higher tariffs.
According to the U.S. 'Federal Reserve Act,' the country is divided into 12 Federal Reserve Districts, each with its own Federal Reserve Bank. This report, also known as the 'Beige Book,' is compiled based on the latest survey results from the 12 Federal Reserve Banks.
The report shows that from mid-July to the end of August, many Federal Reserve Districts reported that the impact of tariffs on input prices was particularly evident, with several districts recording increases in insurance, utilities, and technology service prices. Some companies have already passed all increased costs on to customers. Companies in contact with the Federal Reserve widely expect prices to continue rising in the coming months.
The report states that due to increased economic uncertainty and higher tariff rates, wage growth for many households has failed to keep pace with rising prices, resulting in flat or declining consumer spending across all Federal Reserve Districts.
In terms of the labor market, overall employment levels remained virtually unchanged in 11 Federal Reserve Districts, while one district saw a slight decline. Due to weakened demand or rising uncertainty, firms in seven Federal Reserve Districts were reluctant to hire, and layoffs increased in two districts.
The Federal Reserve publishes the 'Beige Book' eight times a year to take stock of economic conditions nationwide via the Federal Reserve Banks. The report serves as an important reference material for the Fed's monetary policy meetings.
Since the beginning of this year, the U.S. government has repeatedly wielded the 'tariff stick,' imposing higher tariffs on its trading partners. On July 31, the U.S. announced tariff rates on goods imported from 69 trading partners, ranging from 10% to 41%. According to the tariff tracking tool jointly developed by the World Trade Organization and the International Monetary Fund, as of August 7, the U.S. trade-weighted average tariff rate on all global products jumped to 20.11%, a sharp increase from 2.44% at the beginning of the year.