US consumers, businesses squeezed by inflation, Fed survey shows
Key takeaways
- “Districts noted that energy-related costs tied to the conflict in the Middle East were the primary driver of inflationary pressures, with spillovers into shipping, packaging, groceries, and fertilizer,” it said.
- One contact told the Kansas City Federal Reserve that “middle-income households are squeezing more life out of every dollar before deciding to spend it.”
- Inflation has been above the Fed’s 2% target for more than five years.
Why this matters: local context for readers following news across Pakistan and the region.
Add ARY News on Google AAResize Federal Reserve Chairman Kevin Warsh inherits an economy still riding an investment boom but showing signs of consumer strain, weak hiring and rising prices, according to reports from his colleagues that will frame his debut meeting in two weeks as the head of the US central bank.
“Business outlooks for the next six months were reported to have little change in anticipated growth, as elevated uncertainty and signs of weakening consumer spending weighed on sentiment,” the Federal Reserve said on Wednesday in its latest “Beige Book” report, a roundup of qualitative economic data from across the country that policymakers use to help inform their understanding of the economy and their policy decisions.
“Districts noted that energy-related costs tied to the conflict in the Middle East were the primary driver of inflationary pressures, with spillovers into shipping, packaging, groceries, and fertilizer,” it said.