MNI BRIEF: Fed Contacts See Higher Prices Due To Tariffs
MNI (WASHINGTON) - The Federal Reserve's regional business contacts said in the latest Beige Book report U.S. tariffs will likely lead them to raise prices, according to a report released Wednesday.
"Contacts in most Districts expected potential tariffs on inputs would lead them to raise prices, with isolated reports of firms raising prices preemptively," the report said. "Some contacts in (construction) also expressed nervousness around the impact of potential tariffs on the price of lumber and other materials." (See MNI INTERVIEW: Tariffs Cloud Outlook For Strong Services-ISM)
The Beige Book showed overall activity rose slightly since mid-February, while employment edged higher and prices rose moderately in most districts. "Input price pressures were generally greater than sales price pressures, particularly in manufacturing and construction."