Federal Reserve Beige Book: Tariffs are putting upward pressure on costs and prices

The Fed Beige Book said prices have risen at a moderate pace since the last report. There were widespread reports that respondents expected future costs and prices to rise at a faster pace. A few districts described these expected cost increases as strong. All districts reported that higher tariff rates were putting upward pressure on costs and prices. However, respondents responded to these higher costs in different ways, including raising prices on affected goods, raising prices on all goods, shrinking margins, and imposing temporary fees or surcharges. Respondents who plan to pass on tariff-related costs are expected to take action within three months.