Tariff effects broaden across U.S.
The U.S. central bank's "Beige Book" report, a snapshot of the economy gleaned from discussions with business contacts in the Fed's 12 districts in the weeks through November 26, also said that the economy appeared to be growing modestly to moderately.
Labor markets tightened across a broad range of industries, and wage growth "tended to the higher side of a modest to moderate pace."
At the same time, Fed Chairman Jerome Powell has signaled the Fed's three-year tightening cycle is drawing to a close and central bankers are looking for signs a global growth slowdown and a U.S.-China trade war might be weighing on the U.S. economy.
"Reports of tariff-induced cost increases have spread more broadly from manufacturers and contractors to retailers and restaurants," the Fed said in its report on Wednesday. ■