In the Fed’s latest Beige Book survey, “all districts reported elevated levels of economic and policy uncertainty, which have led to hesitancy and a cautious approach to business and household decisions.”
“The economy is in a lot of flux, policy is in flux, there’s a lot of uncertainty. I think we’ll have to wait three to six months to start to see where this settles out.”
If consumers lose faith in the central bank’s ability to control inflation, the Fed will require more draconian measures to contain tariff-related price spikes.
