The possibility of increased tariffs under the incoming administration of Donald Trump has raised worries about economic stability and inflation, according to the Federal Reserve’s Beige Book released on Wednesday. These concerns emerge at a time when price pressures are anticipated to persist throughout 2025.
“Contacts expected prices to continue to rise in 2025, with some noting the potential for higher tariffs to contribute to price increases,” the report stated, based on information collected by the Federal Reserve’s 12 regional banks through January 6.
Several districts reported concerns that changes in immigration and tariff policies could have adverse effects on the economy. These anxieties come just days before Donald Trump’s inauguration on January 20, with expectations mounting that tariffs could be implemented sooner rather than later.
Despite this, the overall outlook on the economy remains cautiously optimistic. However, the Beige Book noted growing uncertainty surrounding labor demand. “Contacts in some Districts expressed greater uncertainty about their future staffing needs,” it added.
