Federal Reserve Beige Book: War increases uncertainty, U.S. businesses adopt a wait-and-see attitude
BlockBeats News, April 16 — The Federal Reserve stated that as new uncertainties and rising energy costs are triggered by the war in Iran, economic activity across most U.S. regions continued to grow at a moderate to slight pace. In the Beige Book released on Wednesday, the Federal Reserve pointed out that overall price increases remain moderate, but energy and fuel costs have risen “significantly” in all 12 Federal Reserve districts.
The Federal Reserve said: “The Middle East conflict is seen as a major source of uncertainty, adding complexity to hiring, pricing, and capital investment decisions for businesses, with many adopting a wait-and-see attitude.” The report was compiled by the New York Federal Reserve, with data as of April 6, and reflects the initial economic impact of the war on the U.S. economy.
The oil price shock caused by the conflict has pushed up gasoline prices, leading U.S. inflation in March to record its largest increase since 2022. Several Federal Reserve policymakers have indicated a preference to keep interest rates steady for a longer period in order to assess economic data. (Golden Ten Data)
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