📊 The U.S. Federal Reserve’s latest “Beige Book” report is out, and it’s showing that more companies are trimming workforces amid weaker demand and rising economic jitters. In simple terms, businesses are playing it safe by cutting staff to ride out uncertainty. 😬
Even though overall activity stayed mostly flat in recent weeks, consumer spending—especially on retail—has eased off. 🛍️
Just a day earlier, Fed Chair Jerome Powell warned in Philadelphia that slower hiring could put the U.S. economy at risk, a clear sign the Fed is gearing up for more interest rate cuts. Markets are betting on two cuts before year-end and another in 2026, which could mean cheaper mortgages, car loans, and business financing for you and me. 🚗💸
Back in September, the Fed made its first cut for the year after job numbers cooled, but they’re treading carefully to keep inflation in check. 🔍
On top of that, tariffs on trading partners have pushed import costs higher, and services like insurance and health care are also getting pricier. The result? Some industries are struggling with bigger bills, though not all of these costs are landing at the checkout counter yet. 💼💰
Looking ahead, uncertainty remains the name of the game. Many Fed contacts noted more layoffs and attrition, while some are ramping up investments in AI technologies to boost efficiency. 🤖✨
Labor supply is also feeling the pinch in sectors like agriculture and construction, partly due to immigration policy shifts. 🚜🏗️
Bottom line: The Fed is monitoring every move, from job cuts to price jumps and AI bets, as it charts the next steps for interest rates. Stay tuned—changes in U.S. monetary policy can ripple across global markets, affecting everything from your future home loan rates to startup funding in our region. 🌏💼
Reference(s):
U.S. Fed sees more firms reducing staff on economic uncertainty
cgtn.com
