The US central bank, the Fed, warns that increased economic uncertainty is affecting consumer confidence. This is happening after US President Donald Trump has introduced tariffs against a number of countries. The Fed writes this in a report called the "Beige Book".
It is published eight times a year and assesses the US economy. It is always published two weeks before a central bank interest rate meeting. The report's data is based on statements from the Fed's 12 districts. Each district has its own regional central bank.
Consumption has increased slightly, the Fed estimates. Several Fed districts report that "sales have been subdued due to economic uncertainty, increased price sensitivity and low-income consumers who have adjusted their spending downwards". The report mentions, among other things, the tariffs, which have been a central part of Trump's policy.
- Some companies have continued to pass on tariff-related costs to their customers. Others have begun to do so after absorbing previous increases, the report says.
The report shows that inflation was 2.9 percent in December. That is more than the bank's long-term target of two percent. The US labor market has been largely stable in recent months, with unemployment in January at 4.3 percent, the Fed writes.
Data for the report has been collected up to February 23. This means that the consequences of the US Supreme Court's decision on tariffs are not included in the report. The consequences of the US and Israeli attacks on Iran are also not included.
When Trump returned to office as US president last year, he imposed tariffs on almost every country in the world. This turned the financial market upside down.
Last month, the US Supreme Court lifted the tariffs on the grounds that Trump did not have the authority to impose them. Trump has since used another law to impose a new global tariff of 10 percent.
On Wednesday, his Treasury Secretary, Scott Bessent, said an increase to 15 percent could be implemented this week.
/ritzau/AFP
Text, graphics, images, sound, and other content on this website are protected under copyright law. DK Medier reserves all rights to the content, including the right to exploit the content for the purpose of text and data mining, cf. Section 11b of the Copyright Act and Article 4 of the DSM Directive.
Customers with IP agreements/major customer agreements may only share Danish Offshore Industry articles internally for the purpose of handling specific cases. Sharing in connection with specific cases refers to journaling, archiving, or similar uses.
Customers with a personal subscription/login may not share Danish Offshore Industry articles with individuals who do not themselves have a personal subscription to Danish Offshore Industry.
Any deviation from the above requires written consent from DK Medier.
