President Donald Trump’s tariffs are pushing inflation generally higher as companies are caught between absorbing the costs or passing them onto customers, according to a Federal Reserve report Wednesday.
The central bank’s periodic Beige Book report, published eight times a year generally at about six-week intervals, categorized overall economic growth as having “changed little” since the last report on Sept. 3. Labor markets “were largely stable” as demand was “muted” for most of the Fed’s 12 districts.
When it came to prices, though, Trump’s duties implemented in April and then staggered through ensuing months showed an impact.
“Prices rose further during the reporting period,” the report stated. “Tariff-induced input cost increases were reported across many Districts, but the extent of those higher costs passing through to final prices varied.”
In some cases, firms held prices unchanged to stay competitive and to appease inflation-sensitive clients. However, some businesses said they were “fully passing higher import costs along to their customers.”
