"Some Companies Pass Entire Import Cost Increases to Customers"
Additional Price Increases Reported During Survey Period
The U.S. Federal Reserve has reported that the cost burden on companies is becoming a reality due to President Donald Trump's tariff policies.
In its Beige Book, an economic trend report released on October 15 (local time), the Federal Reserve stated, "Prices continued to rise during the survey period," adding, "In several regions, high costs in services such as insurance, healthcare, and technology solutions, in addition to import costs, are accelerating increases in input costs." The report continued, "Rising input costs due to tariffs were reported in multiple regions, but the extent to which these higher costs were passed on to final prices varied by region."
The Federal Reserve also explained that some companies froze prices to maintain competitiveness, or refrained from raising prices out of consideration for consumers sensitive to inflation. On the other hand, some companies stated that "the full increase in import costs is being passed on to customers." In certain regions, there were also reports that material prices actually fell due to decreased demand.
Regarding the labor market, the Federal Reserve assessed that while employment levels have generally remained stable in recent weeks, overall labor demand has been subdued.
The Federal Reserve further diagnosed that U.S. economic activity has not shown significant changes since the September report. Among the 12 Federal Reserve districts, three showed modest growth, five saw little change, and four experienced somewhat weaker economic conditions.
The Beige Book is a report that evaluates economic trends across the 12 Federal Reserve districts. The Federal Reserve will use this as reference material at the upcoming Federal Open Market Committee (FOMC) regular meeting scheduled for October 28-29.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
